Moody’s upgrades Michael Kors notes

Moody's Investors Service said it upgraded Michael Kors (USA), Inc. senior unsecured notes to Ba1 from Ba2.

All other ratings were affirmed, including its Ba1 corporate family rating, Ba1 issuer rating, and Ba1-PD probability of default rating. The speculative grade liquidity rating remains at SGL-1.

The outlook was changed to positive from stable.

"The upgrade of the senior unsecured notes reflects the release of collateral that was formerly securing its senior credit facility which leaves the notes pari passu with its bank debt," Moody’s senior vice president Christina Boni said in a news release.

“The positive outlook reflects Michael Kors' recent improvement in operating performance at all of its brands as well as its return to a senior unsecured capital structure which better supports upward movement to an investment grade rating.”

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