The rating on Greensboro, N.C.-based VF Corp. reflects the company's strong business profile given the company's good market positions in outdoor and action sports and jeanswear, portfolio of well-recognized brand names, and diversification by distribution channel. Standard&Poor's Ratings Services believes that the company's financial risk profile is modest given recent strengthening of its credit metrics and solid cash flow. However, the company participates in the highly competitive apparel industry, which is subject to fashion risk and changes in discretionary consumer spending. The company's outdoor and action sports business (with such brands as The North Face, Vans, Jansport, Eastpak, and Reef) is now the largest business unit, surpassing the jeans segment in 2009 with about 38% of revenues or
