CORPORATESISSUER COMMENT 1 OCTOBER 2015RALPH LAUREN CORPORATION (RL)Moodys Senior Unsecured Rating A2Moodys Outlook STABond-Implied Rating A1CDS-Implied Rating A3EDF-Implied Rating A2As of 9/30/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Market Signals ReviewRalph Lauren: Market-Implied Ratings Recover Both the EDF'- and the bond-implied ratings for Ralph Lauren Corporation recently rebounded by one notch from their levels of 30 days ago (Figure 1). The CDS-implied rating is one-notch higher than its 12-month low point of Baa1 over the summer.The recovery in the EDF- and bond-implied ratings likely reflects the announcement this week that the company appointed a new chief executive. The share price of Ralph Lauren reached a 12-month low of $104.05 on September 29, but after the announcement of the management it shift rose by 14% to close at $118.16 on September 30.FIGURE 1. RALPH LAUREN: MOODYS AND MARKET-IMPLIED RATINGS, 30 DAYS (DAILY DATA)One year ago the EDF-implied rating was Aa3; it slipped three notches to a low point of A3 on several dates in September and has since rallied to A2. A year ago the bond-implied rating was Aa2; it deteriorated to A3 on March 3. On June 29 it was A2. It has now reached A1. TheMOODY'S ANALYTICS CORPORATES2 1 OCTOBER 2015 MARKET SIGNALS REVIEW: RALPH LAUREN: MARKET-IMPLIED RATINGS RECOVERCDS-implied rating fell to Baa1 on multiple dates in July and August. It is now A3, matching its level of 30 days ago. We have limited data on the companys CDS spreads, and would place less reliance on this market signal.The earlier downdraft in Ralph Laurens market-implied ratings in 2015 is likely the result of disappointing revenue growth results in recent quarters.According to our ratings...
