Fitch hikes Tapestry

Fitch Ratings said it upgraded Tapestry, Inc.'s ratings, including its long-term issuer default rating to BBB- from BB and its unsecured revolving credit facility and notes to BBB- from BB/RR4.

“The upgrade of Tapestry's IDR to its pre-pandemic rating reflect its improving top line trajectory and sustainable cost reductions, which led to fiscal 2021 (ending July 3, 2021) EBITDA of approximately $1.4 billion, similar to pre-pandemic levels. EBITDA improvement alongside Tapestry's recently announced intention to repay $400 million of unsecured notes due July 2022, have improved Fitch's confidence in Tapestry's ability to sustain adjusted leverage around 3x, appropriate for the BBB- rating,” the agency said in a press release.

The outlook is stable.

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