Fitch affirms Hasbro

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

The outlook is stable.

The agency said Hasbro's ratings reflect the company's leading position in the traditional toy industry with revenues of $4 billion, its broad portfolio of highly diverse brands, its significant liquidity and a highly variable cost structure that allows it to have higher EBITDA margins than many of its large peers.

The ratings also incorporate potential revenue pressure caused by a fragile economic recovery and risk factors inherent to the toy industry including a concentration of sales to Wal-Mart, Toys 'R' Us and Target; low barriers to entry; fashion risk; and high levels of seasonality regarding profitability and working capital usage, Fitch said.

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