Moody's lifts Foot Locker view to positive

Moody's Investors Service said it revised Foot Locker, Inc.'s outlook to positive from stable and assigned a first-time speculative-grade rating of SGL-1.

Moody's also said it affirmed the company's Ba3 corporate family rating, Ba3 probability of default rating and B1 (LGD 4, 65%) senior unsecured notes rating.

The outlook change acknowledges Foot Locker's positive momentum in earnings growth and very good liquidity, the agency said.

While still relatively highly leveraged on a lease-adjusted basis, Foot Locker's credit metrics have improved significantly over the past year, Moody's said.

The positive outlook reflects the company's potential to sustain this profitability, take advantage of growth opportunities abroad and maintain very good liquidity, the agency said.

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