Moody's alters Wolverine view to stable

Moody's Investors Service said it changed Wolverine World Wide, Inc.'s outlook to stable from negative. The agency also affirmed its ratings, including its Ba1 corporate family rating, Ba1-PD probability of default rating, and Ba2 senior unsecured notes ratings. The company's speculative grade liquidity rating was upgraded to SGL-1 from SGL-2.

"The outlook change to stable reflects our expectation for improved operating performance and credit metrics as the company recovers from the global coronavirus pandemic," stated Mike Zuccaro, a Moody's vice president, in a press release.

"Wolverine is exhibiting strong demand, particularly in running, outdoor and work, with a healthy wholesale order book, strong growth in direct to consumer channels as well as international markets," Zuccaro added.

The SGL rating upgrade reflects Wolverine’s very good liquidity, supported by $365 million of cash as of the first quarter and nearly full excess availability on its undrawn $800 million revolver, and an expectation for continued positive free cash flow, Moody’s said.

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