Fitch rates Farfetch B-, loan BB-

Fitch Ratings said it assigned FarFetch Ltd. an expected B- issuer rating default and expected BB-/RR1 ratings to its planned term loan. The outlook is stable.

“The IDR reflects Farfetch's fairly weak financial profile with Fitch-projected negative EBITDAR in 2022 and negative free cash flow (FCF) over 2022-2023. However, the rating is supported by Farfetch's leading position in the global e-commerce personal luxury market. It is well-placed to capture strong growth opportunities due to its established and geographically diversified online marketplace platform for its wide and growing portfolio of leading global luxury brands,” the agency said in a press release.

The outlook reflects a view of adequate liquidity post-loan placement to fund growth and Farfetch's put-option liabilities over 2022-2024 should they be exercised in cash, Fitch said.

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