Fitch upgrades Hasbro

Fitch Ratings said it upgraded Hasbro, Inc.'s issuer default rating, unsecured bank facility and senior notes to BBB+ from BBB.

The outlook is stable.

The agency said Hasbro's ratings reflect its leading position in the traditional toy industry with revenues of $4 billion and an improving operating performance. Metrics are strong, including a total debt-to-EBITDA ratio of 1.1 times, and the company's performance in the very difficult fourth quarter was better than expected.

The ratings also incorporate the volatility inherent in the toy industry, Fitch said, including low barriers to entry, fashion risk, energy-related commodity cost increases, customer concentration in the United States, age compression, declining to flat domestic industry revenues and increased seasonality, particularly regarding profitability.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.