Research Update: VF Corp. Downgraded To 'BBB-' From 'BBB' On Weak Forecast; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: VF Corp. Downgraded To 'BBB-' From 'BBB' On Weak Forecast; Outlook Negative

Research Update: VF Corp. Downgraded To 'BBB-' From 'BBB' On Weak Forecast; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: VF Corp. Downgraded To 'BBB-' From 'BBB' On Weak Forecast; Outlook Negative
Published Feb 15, 2024
8 pages (3401 words) — Published Feb 15, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

U.S.-based VF Corp.'s third-quarter 2024 (ended Dec. 31, 2023) earnings indicate that credit metrics will continue to deteriorate, leading to leverage near 5x in fiscal 2024 after sales for its strongest brand, The North Face, declined 10% in the quarter. We have lowered our forecast and now believe VF will have to sell sizeable brands to meaningfully reduce leverage in the near term. We lowered our issuer credit rating to 'BBB-' from 'BBB' and our short-term and commercial paper ratings to 'A-3' from 'A-2'. The outlook is negative. The negative outlook indicates that we could lower the ratings if credit metrics do not improve within the next 12-24 months, including S&P Global Ratings-adjusted debt to EBITDA below 4x. While we

  
Brief Excerpt:

...- U.S.-based VF Corp.'s third-quarter 2024 (ended Dec. 31, 2023) earnings indicate that credit metrics will continue to deteriorate, leading to leverage near 5x in fiscal 2024 after sales for its strongest brand, The North Face, declined 10% in the quarter. - We have lowered our forecast and now believe VF will have to sell sizeable brands to meaningfully reduce leverage in the near term. - We lowered our issuer credit rating to '###-' from '###' and our short-term and commercial paper ratings to 'A-3' from 'A-2'. The outlook is negative. - The negative outlook indicates that we could lower the ratings if credit metrics do not improve within the next 12-24 months, including S&P Global Ratings-adjusted debt to EBITDA below 4x....

  
Report Type:

Research Update

Ticker
VFC
Issuer
VF Corp.
GICS
Apparel , Accessories & Luxury Goods (25203010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: VF Corp. Downgraded To 'BBB-' From 'BBB' On Weak Forecast; Outlook Negative" Feb 15, 2024. Alacra Store. May 21, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-VF-Corp-Downgraded-To-BBB-From-BBB-On-Weak-Forecast-Outlook-Negative-3136894>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: VF Corp. Downgraded To 'BBB-' From 'BBB' On Weak Forecast; Outlook Negative Feb 15, 2024. New York, NY: Alacra Store. Retrieved May 21, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-VF-Corp-Downgraded-To-BBB-From-BBB-On-Weak-Forecast-Outlook-Negative-3136894>
  
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