Research Update: VF Corp. Corporate And Issue-Level 'A' Ratings Affirmed; Outlook Stable

We expect U.S. based apparel manufacturer VF Corp. to manage its net debt-to-EBITDA ratio between 1.5x-2.0x over the next one to two years, while remaining focused on additional acquisition opportunities. While debt leverage is currently at the high end of this range, we believe that financial discipline and operational gains will help the company reduce leverage to the 1.5x area over the next one to two years. We are affirming all ratings, including our 'A' corporate credit rating on VF Corp. The outlook is stable, reflecting our expectations that the company will continue to demonstrate solid operating performance and strong free cash flow generation that will allow it to pursue new acquisitions and reduce leverage toward the mid-1.0x area. On

...+ We expect U.S. based apparel manufacturer VF Corp. to manage its net debt-to-EBITDA ratio between 1.5x-2.0x over the next one to two years, while remaining focused on additional acquisition opportunities. + While debt leverage is currently at the high end of this range, we believe that financial discipline and operational gains will help the company reduce leverage to the 1.5x area over the next one to two years. + We are affirming all ratings, including our 'A' corporate credit rating on VF Corp. + The outlook is stable, reflecting our expectations that the company will continue to demonstrate solid operating performance and strong free cash flow generation that will allow it to pursue new acquisitions and reduce leverage toward the mid-1.0x area....

Research Update