Moody's ups Hasbro

Moody's Investors Service said it upgraded Hasbro, Inc.'s long-term rating to Baa2 from Baa3, concluding the review for upgrade initiated on July 16.

The outlook is stable.

According to Moody's, the rating upgrade was prompted by significantly improved credit metrics, lower operating costs resulting from the company's cost-cutting initiatives, renewed focus on core brands with good organic growth over recent periods and the company's focus on innovation.

The rating is based on Hasbro's strong market positions, portfolio of strong brands, broad geographical diversification, conservative balance sheet and strong credit metrics, Moody's said.

These positives are offset the toy industry's seasonality and volatility, the agency said. Further constraining the rating are the company's limited size and segment diversification, modest overall organic growth prospects, reliance on entertainment releases, highly concentrated customer base and ongoing exposure to cost increases, Moody's said.

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