U.S.-based VF Corp. announced yesterday its agreement to acquire Timberland in a roughly $2 billion transaction. We expect this large transaction to be substantially financed with debt, which will likely modestly weaken credit metrics. We removed our 'A-2' short term debt rating from CreditWatch. Our 'A-' corporate credit rating on VF Corp. remains on CreditWatch with negative implications. On June 14, 2011, Standard&Poor's Ratings Services removed its 'A-2' short-term ratings on VF Corp. from CreditWatch with negative implications. Our 'A-' corporate credit and unsecured debt ratings on VF Corp. remain on CreditWatch, where they were placed yesterday with negative implications. The ratings were placed on CreditWatch following VF Corp.'s announcement that it had entered into a definitive agreement
