S&P shifts Signet Jewelers view to positive

S&P said it revised Signet Jewelers Ltd.’s outlook to positive from negative and affirmed its B+ issuer rating.

The outlook reflects Signet’s improving credit metrics due to better-than-expected operating performance and balance-sheet deleveraging. Performance gradually improved over the last few months following the initial damage caused by the pandemic, the agency said.

Increased cash flow enabled Signet to repay all its revolver borrowings, further improving its S&P Global Ratings-adjusted credit protection metrics relative to the agency’s prior estimates, S&P said.

The agency said it could raise Signet’s ratings on over the next 12 months if it continues to improve operating performance, maintains leverage in the 3x area on a sustained basis and adequately addresses preferred share interest.

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