S&P gives Ralph Lauren negative view

S&P said it affirmed all of its ratings for Ralph Lauren Corp., including the A- issuer rating, removed them from CreditWatch with negative implications and assigned a negative outlook.

“The affirmation and removal from CreditWatch reflect our view that the company will recover when Covid-19 cases are largely contained. We expect Ralph Lauren's fiscal 2021's operating results will be weak and rolling 12 month credit metrics will be weakest in the upcoming quarter, with adjusted leverage likely peaking above 3x, from 0.8x as of December 2019,” S&P said in a press release.

S&P said it forecasts profitability and cash flow generation will improve sequentially, and that leverage will improve to the mid-to-low-2x area by the end of its fiscal 2021 (ending March 2021) for the company.

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