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

U.S.-based video commerce and online retailer Qurate Retail Inc. outperformed our expectations in 2020 by solidly increasing its sales and profit, which reduced its leverage to the mid-3x area. In particular, the company benefited from the shift in demand toward its digital offerings and elevated demand for its home-related products. We expect Qurate to maintain appropriate credit metrics for the current rating while balancing its shareholder returns against its uncertain and highly competitive operating environment. Therefore, we revised our outlook on Qurate to stable from negative and affirmed all of our ratings, including our 'BB-' issuer credit rating, on the company. The stable outlook reflects our expectation that Qurate will continue to generate good cash flow while prioritizing shareholder returns,

...U.S.-based video commerce and online retailer Qurate Retail Inc. outperformed our expectations in 2020 by solidly increasing its sales and profit, which reduced its leverage to the mid-3x area. In particular, the company benefited from the shift in demand toward its digital offerings and elevated demand for its home-related products. - We expect Qurate to maintain appropriate credit metrics for the current rating while balancing its shareholder returns against its uncertain and highly competitive operating environment. - Therefore, we revised our outlook on Qurate to stable from negative and affirmed all of our ratings, including our '##-' issuer credit rating, on the company. - The stable outlook reflects our expectation that Qurate will continue to generate good cash flow while prioritizing shareholder returns, which will lead it to sustain leverage in the high 3x range....

Research Update