Fitch affirms Hasbro

Fitch Ratings said it affirmed Hasbro, Inc.'s issuer default rating, unsecured bank facility and senior notes at BBB.

The outlook is stable.

On Aug. 2, Hasbro announced a $500 million share repurchase authorization. The agency said that while the buyback is large in terms of recent history, the company has significant financial flexibility and the ratings are expected to remain unchanged as the program is executed.

Hasbro's ratings continue to reflect a relatively consistent top line, continued improvement in operations, sizable debt reduction and strong cash flow, Fitch said. The company had a total adjusted debt-to-EBITDAR ratio of 1.5x at July 1.

The ratings also incorporate the volatility inherent in the toy business due to low barriers to entry, fashion risk, energy-related commodity cost increases, customer concentration in the United States to Wal-Mart, Toys R Us and Target, age compression, declining to flat domestic revenues and increased seasonality, the agency added.

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