Moody’s changes PVH outlook to positive

Moody's Investors Service said it changed the outlook for PVH Corp., PVH BV and PVH Asia Ltd. outlooks to positive from stable.

“The outlook change to positive reflects PVH's ability to maintain solid credit metrics over the last several years in a difficult operating environment. Despite the supply chain challenges, high inflation, currency pressures and softer consumer spending over the past few years, credit metrics have remained solid, with Moody's adjusted debt/EBITDA of around 2.6x and EBITA to interest of around 5.6x. Free cash flow has turned positive again in 2023, as a result of cost containment actions, improved efficiencies and a focus on reducing inventory levels; although with excess largely used to repurchase shares.

“Moody's expects PVH's credit metrics to steadily improve over time as it continues to execute its ‘PVH+’ growth plan, which is designed to drive profitable growth and significant margin expansion and free cash flow,” the agency said in a press release.

The agency also affirmed PVH's Baa3 senior unsecured notes and senior unsecured bank credit facility ratings and PVH BV's and PVH Asia's Baa3 senior unsecured bank credit facilities ratings.

© 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.