Fitch lifts Capri to investment grade

Fitch Ratings said it upgraded Capri Holdings Ltd.'s and Michael Kors (USA), Inc.'s ratings, including their long-term issuer default ratings to BBB- from BB+.

“The upgrade of Capri's IDR to its pre-pandemic rating reflects its improving top line trajectory which led to LTM June 2021 EBITDA of approximately $1.1 billion, similar to pre-pandemic levels. EBITDA improvement alongside continued debt reduction, including approximately $870 million of paydown in the fiscal year ended March 2021, have improved Fitch's confidence in Capri's ability to sustain adjusted leverage in the low-3x, as appropriate for the BBB- rating,” the agency said in a press release.

The outlook is stable.

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