Moody's downgrades Wolverine

Moody's Investors Service said it downgraded Wolverine World Wide, Inc.'s ratings, including the corporate family rating to Ba2 from Ba1, probability of default rating to Ba2-PD from Ba1-PD and senior unsecured notes rating to Ba3 from Ba2. The company's speculative grade liquidity rating remains SGL-2.

The agency also changed the outlook to stable from negative.

“The downgrade reflects Wolverine's elevated leverage compared to Moody's original expectations and similarly rated peers, and risks to the pace of deleveraging given macroeconomic, foreign currency and supply chain pressures and the more promotional retail environment. In addition, the downgrade reflects governance factors, specifically Wolverine's continued high debt levels following the Sweaty Betty acquisition and as reduced cash flow generation and share repurchases prevented debt repayment,” the agency said in a press release.

However, the improved outlook reflects the view Wolverine will lower leverage and maintain good liquidity, Moody’s said.

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