Fitch upgrades Levi Strauss’ long-term IDR to ‘BBB-‘ from ‘BB+’

Levi Strauss (LEVI) announced that Fitch Ratings has upgraded its Long-Term Issuer Default Rating (IDR) to ‘BBB-‘ from ‘BB+’. The investment grade rating accompanies an indication to the market that the company has a Stable Rating Outlook. “The upgrade from Fitch underscores our commitment to financial discipline while driving strategic growth across regions, channels and categories,” said Harmit Singh, chief financial and growth officer of Levi Strauss & Co. “We are proud of the progress we’ve made in strengthening our financial foundation and improving the structural economics of our business, which accelerates our momentum to become a $10B company with 15% EBIT margins. The upgrade from Fitch Ratings validates the work we are doing to execute on our strategic initiatives and deliver value to our stakeholders.” Fitch’s upgrade reflects the improvement in LS&Co.’s EBITDAR leverage following its lease criteria update. In addition, Fitch highlighted Levi’s strong cash flow generation and strategic focus on direct-to-consumer channels and portfolio diversification have contributed to this positive outlook.