Fitch lifts Levi Strauss to BB-

Fitch Ratings said it upgraded its issuer default rating on Levi Strauss & Co. to BB- from B+.

In addition, the agency affirmed the rating on Levi's secured bank credit facility at BB+ and senior unsecured notes at BB-.

The outlook is stable.

Levi had $1.6 billion of debt outstanding as of Aug. 25.

Fitch said the upgrade reflects strong, margin-driven growth in EBITDA to $616 million in the 12 months ended Aug. 25 from a level below $500 million over the past four years, together with meaningful debt reduction over 2012-2013, leading to marked improvement in the company's credit profile.

The upgrade further reflects the expectation for additional debt repayment over the next several years that will drive further improvement in adjusted leverage, the agency said. The rating continues to reflect Levi's well-known brands, strong market shares and wide geographic diversity, as well as the challenging consumer environment and weak sales trends in international markets.

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