Research Update: Qurate Retail Inc. Outlook Revised To Stable From Negative On Improving Operating Performance; Ratings Affirmed

U.S.-based video commerce and online retailer Qurate Retail Inc. reported improved free operating cash flow in 2023 as profitability was better than we previously anticipated. It also de-leveraged last year, improving the core business after a challenging 2022. Therefore, we revised our outlook to stable from negative and affirmed all our ratings on Qurate, including our 'CCC+' issuer credit rating. The stable outlook reflects our expectation that Qurate will maintain sufficient liquidity over the next 12 months despite our view its capital structure remains unsustainable, as further cost reductions offset sales weakness and support profit recovery. Reported free operating cash flow (FOCF) improved to $576 million from negative $119 million in 2022. This was mainly driven by EBITDA growth and

...- U.S.-based video commerce and online retailer Qurate Retail Inc. reported improved free operating cash flow in 2023 as profitability was better than we previously anticipated. It also de-leveraged last year, improving the core business after a challenging 2022. - Therefore, we revised our outlook to stable from negative and affirmed all our ratings on Qurate, including our '###+' issuer credit rating. - The stable outlook reflects our expectation that Qurate will maintain sufficient liquidity over the next 12 months despite our view its capital structure remains unsustainable, as further cost reductions offset sales weakness and support profit recovery....

Research Update