Moody's assigns Hanesbrands notes B1

Moody's Investors Service said it affirmed Hanesbrands Inc.'s Ba3 corporate family and probability of default ratings and SGL-2 speculative grade liquidity rating.

The agency also said it assigned a B1 rating to Hanesbrands' proposed $750 million of senior unsecured notes.

The proceeds will be used to repay existing senior secured debt.

The outlook remains stable.

The ratings reflect the company's significant scale of operation, portfolio of well-known brands and the benefits of a vertically integrated supply chain, Moody's said.

The rating also takes into consideration the relatively stable demand for the basic apparel products sold by the company, the agency said, and the commoditized nature of the product categories in which the company competes.

The ratings are constrained by its moderate financial leverage with a debt-to-EBITDA ratio in the low 4x, Moody's said.

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