Moody's rates Renfro loan B2

Moody's Investors Service said it assigned a B2 corporate family rating and B3 probability-of-default rating to Renfro Corp. and a B2 rating to its proposed $145 million senior secured term loan facility, which has a $35 million accordion feature.

The outlook is stable.

The agency said the ratings reflect Renfro's moderate scale in the apparel industry, its sole focus on the sock sector and the commoditized nature of the segment. Ratings are also constrained by limited brand diversification, with the licensed Fruit of the Loom brand accounting for the majority of sales, and high client concentration, with the top three customers accounting for a substantial majority of sales.

The ratings are supported the company's leading market share and low-cost manufacturing platform, Moody's said.

The stable outlook reflects the agency's expectations that Renfro will maintain relatively steady operating margins and slowly improving financial metrics given the moderate level of free cash flow.

© 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.