Fitch rates Levi notes B+/RR4

Fitch Ratings said it assigned a rating of B+/RR4 to Levi Strauss & Co.'s $350 million of 10-year notes. The issuer default rating is B+.

The outlook is negative.

Proceeds will be used to repurchase the company's $350 million of 8 7/8% notes due April 2016.

The rating reflects Levi's well-known brands, strong market shares and wide geographic diversity, balanced against soft operating trends and continued high financial leverage, the agency said.

Leverage, of adjusted debt to EBITDAR, increased to 5.1 times at the end of the first quarter from 4.8x at year-end 2010, due to lower EBITDA and an increase in debt levels, the agency noted.

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