Moody's rates Levi Strauss notes B2

Moody's Investors Service said it assigned to Levi Strauss & Co.'s proposed $460 million senior unsecured notes due 2020 a B2 rating (LGD4, 63%) and to its €275 million senior unsecured notes due 2018 a B2 rating (LGD4, 63%). The agency also affirmed its corporate family rating at B1, probability of default rating at B1 and its $325 million senior term loan due 2014 and $350 million senior notes due 2016 at B2 (LGD4, 63% from LGD4, 66%).

The outlook remains stable.

The ratings reflect the company's high financial leverage, the company's high reliance on a single product category for the majority of revenues and moderating operating margins, Moody's said.

These factors are offset by the benefits of the company's geographic diversity, the ownership of the iconic "Levi's" brand and its good liquidity profile, the agency said.

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