Moody's ups Wolverine to SGL-1, positive outlook

Moody's Investors Service said it revised Wolverine World Wide, Inc.'s rating outlook to positive from stable and upgraded the speculative grade liquidity rating to SGL-1 from SGL-2.

All other ratings, including the company's Ba3 corporate family rating, were affirmed.

"The revision in Wolverine's rating outlook to positive from stable recognizes the progress the company has made integrating the acquisition of the Performance & Lifestyle Group (PLG) acquisition," Moody's vice president Scott Tuhy said in a news release. The company has substantially achieved key milestones on the integration program while continuing to drive broad-based growth across its portfolio of brands.

"At the same time the company has repaid more than $130 million of debt since the closing of the PLG acquisition, and we expect the company will continue to utilize free cash flow to repay debt after investments in its business," Tuhy added in the release.

The upgrade to SGL-1 recognizes the company continues to have significant cash balances, and we expect the company will maintain a high level of liquidity, the agency said. The company also has access to a $200 million substantially undrawn revolving credit facility, which further bolsters its liquidity.

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