Moody's changes Kontoor view to stable

Moody's Investors Service said it changed Kontoor Brands, Inc.'s outlook to stable from negative and affirmed its ratings, including its Ba2 ratings on its senior secured credit facilities. The company's speculative grade liquidity rating was upgraded to SGL-1 from SGL-2.

"The outlook change to stable reflects our expectation for continued sequential improvement in Kontoor's operating performance and credit metrics in 2021," stated Mike Zuccaro, a Moody's vice president, in a press release.

The SGL upgrade reflects Kontoor’s improved liquidity position, supported by $248 million of cash at the end of 2020 and strong operating cash flow, which Moody's expects to cover cash flow needs in 2021 fully, including capital spending, dividends and debt reduction, the agency explained.

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