Fitch cuts Levi Strauss default rating

Fitch Ratings said it downgraded the issuer default rating on Levi Strauss & Co. to B+ from BB- and affirmed the $500 million secured revolving credit facility and $250 million trademark term loan tranche at BB+/RR1 and the senior notes at BB-/RR3.

The outlook is stable.

The downgrade reflects Levi's soft operating trends and margin compression, continued high financial leverage and the expectation that Levi's financial profile will not show meaningful improvement in the next one to two years, Fitch said.

The ratings reflect Levi's well-known brands, strong market shares and wide geographic diversity, the agency added.

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