Fitch ups Levi Strauss

Fitch Ratings said it upgraded Levi Strauss & Co.'s issuer default rating to BB- from B and its $550 million asset-based loan to BB+ from BB/RR1.

The company's senior unsecured notes and senior unsecured term loan have been affirmed at BB-.

The outlook is stable.

The issuer default upgrade reflects streamlined operations and solid operating margins, the agency said.

The ratings also consider the company's well-known brand names, geographic diversity and good liquidity position, offset by high debt balances and the competitive operating environment of the denim and casual bottoms market, Fitch said.

Strong operating profits along with a slight debt decrease have resulted in bolstered credit metrics, the agency said, with leverage measured by total debt-to-EBITDA declining to 3 times for the 12 months ended May 27.

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