Fitch revises Levi Strauss to stable

Fitch Ratings said it affirmed the ratings for Levi Strauss & Co., including the issuer default rating at BB, and revised the outlook to stable from positive.

Levi had $1.1 billion of debt outstanding as of Aug. 28, 2016.

Fitch said the ratings reflect Levi's strong brand, market share and operating initiatives, which should collectively drive low- to mid-single-digit EBITDA growth over the next 24 to 36 months.

The agency expects leverage to trend in the low- to mid-3 times range (3.4 times on a trailing 12-month [TTM] basis as of the third quarter of 2016) over the next 24 to 36 months, assuming flat debt levels.

The ratings also recognize the secular challenges in the mid-tier apparel industry, mitigated somewhat by Levi's geographic diversity, minimal fashion exposure and presence across a wide spectrum of distribution channels, Fitch said.

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