...- Columbus, Ohio based L Brands Inc., the parent company of Bath & Body Works (BBW) and Victoria's Secret, plans to spin-off Victoria's Secret as an independent publicly traded company, Victoria's Secret & Co. (VS). As a part of the transaction, VS plans to issue roughly $1 billion of debt to return capital to Bath and Body Works. - We assigned a '##-' issuer credit rating to Victoria's Secret. - At the same time, we assigned a '##+' issue-level rating and '1' recovery rating to the company's proposed $500 million term loan B due in 2028. The '1' recovery rating indicates our expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a hypothetical default. - The stable outlook reflects our expectation for leverage to be sustained in the high-1x area with good free operating cash flow generation as Victoria's Secret pursues strategic initiatives to reposition the brand for long-term growth, stabilize its leading market share, and improve competitive standing....
