Moody’s rates Ralph Lauren notes A2

Moody's Investors Service said it assigned an A2 rating to Ralph Lauren Corp.'s proposed $400 million senior note offering.

At the same time, the agency affirmed the company’s existing A2 senior unsecured ratings and its P-1 short term commercial paper rating.

The outlook remains stable.

The net proceeds from the offering will be used for general corporate purposes, which may include the repayment of the company's $300 million 2.125% notes due Sept. 26, 2018.

"The affirmation and stable outlook reflect our expectation that Ralph Lauren will continue to make progress with its restructuring, with stabilizing revenues and continued margin expansion over the next 12-18 months," Moody's apparel analyst Mike Zuccaro said in a news release.

"We also expect the company to maintain conservative financial policies, including maintaining significant cash reserves and improving its credit metrics over this timeframe.”

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