Moody’s assigns A3 rating to VF notes

Moody’s Investors Service said it assigned an A3 rating to VF Corp.’s proposed senior unsecured note offering. All other ratings for the company were affirmed, including the A3 senior unsecured rating. The outlook was changed to negative from stable.

Proceeds will be used to repay borrowings under its revolving credit facility, with any remaining net proceeds to be used for general corporate purposes.

“The outlook change to negative reflects the material increase in term debt and leverage at a time when there is significant uncertainty around the duration and severity of the coronavirus spread on VF’s operating performance and credit metrics, and it may take at least a couple of years to improve leverage closer to current levels.

Fitch rates Hannon Armstrong notes BB+

Fitch Ratings said it assigned a rating of BB+ to the $400 million of 6% five-year unsecured notes issued jointly by HAT Holdings I LLC and HAT Holdings II LLC, which are the indirect subsidiaries of Hannon Armstrong Sustainable Infrastructure Capital.

The notes will be guaranteed by Hannon Armstrong.

Proceeds are expected to be used to repay a portion of secured debt outstanding on the credit facility and for general corporate purposes.

S&P rates VF notes A

S&P said it assigned its A rating to VF Corp.’s proposed senior unsecured notes, which the company will issue in four tranches. The notes will rank equally with the company’s unsecured and senior debt.

VF plans to use the proceeds to repay the borrowings under its revolving credit facility, and the remaining balance for general corporate purposes.

“We view the transaction as leverage neutral because we net the company’s cash against its debt. VF Corp.’s leverage was slightly below 2x as of December 2019,” said S&P in a press release.

“All of our ratings on VF Corp., including our A long-term issuer credit rating, are unchanged,” the agency said.

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