Research Update: Signet Jewelers Ltd. Outlook Revised To Positive From Stable On Sustained Credit Metrics; Ratings Affirmed

We expect diamond and jewelry retailer Signet Jewelers Ltd. will likely sustain good credit protection measures, including S&P Global Ratings-adjusted leverage in the mid-1x area, amid good operating trends, including meaningful free operating cash flow generation notwithstanding the deteriorating macroeconomic environment. The company reported better-than-expected operating trends over the past year, including robust sales and adjusted EBITDA growth, leading to S&P Global Ratings-adjusted leverage in the mid-1x area compared with the low-3x area in the previous year. We revised our outlook to positive from stable and affirmed our ratings on Signet and its debt, including our 'BB-' issuer credit rating on the company. The positive outlook reflects the potential for an upgrade if Signet extends its good operating performance and

...- We expect diamond and jewelry retailer Signet Jewelers Ltd. will likely sustain good credit protection measures, including S&P Global Ratings-adjusted leverage in the mid-1x area, amid good operating trends, including meaningful free operating cash flow generation notwithstanding the deteriorating macroeconomic environment. - The company reported better-than-expected operating trends over the past year, including robust sales and adjusted EBITDA growth, leading to S&P Global Ratings-adjusted leverage in the mid-1x area compared with the low-3x area in the previous year. - We revised our outlook to positive from stable and affirmed our ratings on Signet and its debt, including our '##-' issuer credit rating on the company. - The positive outlook reflects the potential for an upgrade if Signet extends its good operating performance and maintains S&P Global Ratings-adjusted leverage below 3x amid a weakening economic environment that we expect will negatively affect discretionary consumer...

Research Update