S&P raises Kontoor Brands

S&P said it raised Kontoor Brands Inc. and its secured debt to BB- from B+. The 3 recovery rating remains unchanged.

“The company is recovering faster than expected post-pandemic due to stronger consumer demand. U.S. consumer confidence has been boosted by the latest stimulus package and the accelerated roll out of vaccinations. Kontoor's first-quarter revenue grew 29%, well above its previous guidance of growth in the low-double digits area,” S&P said in a press release.

The agency said it now projects the company's leverage will improve to mid- to high-2x area by the end of 2021, compared to the previous expectation of mid-3x.

The outlook is stable.

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