S&P ups Levi Strauss, rates notes B-

Standard & Poor's said it assigned its B- rating to Levi Strauss & Co.'s proposed $550 million senior unsecured notes with various maturities (to be determined).

Proceeds from the notes will be used to refinance the company's 11 5/8% notes due 2008.

At the same time, S&P raised its ratings on company, including its long-term corporate credit rating, to B- from CCC.

The ratings were removed from CreditWatch, where they were placed on Feb. 8. The outlook is stable.

S&P said the upgrade reflects the company's improved operating performance, enhanced liquidity profile and the expectation that these trends will continue.

S&P said it expects credit measures to remain weak in the near term, with lease-adjusted total debt to EBITDA in the 4.5x-5.0x range and adjusted EBITDA interest coverage of about 2x.

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