S&P downgrades Ralph Lauren, notes to A-

S&P said it lowered the corporate credit rating on Ralph Lauren Corp. to A- from A.

The outlook is stable.

In addition, the agency downgraded the issue-level ratings on the company's senior unsecured notes to A- from A and the short-term and commercial paper ratings to A-2 from A-1.

S&P said the action reflects its view that Ralph Lauren has had difficulty maintaining share in the changing retail environment and that it will take time to regain it in the highly competitive apparel market that has suffered significant disruption from online retail and fast-fashion retailers.

“The company's efforts to strengthen its brand positioning are yet unproven, and its operating performance will remain under pressure for the remainder of fiscal 2018 (ending in March 2018),” the agency said in a news release.

“We believe that the company will demonstrate progress toward rebuilding its brand perception, attracting new customers, and driving profitable sales in fiscal 2019.”

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