Aug. 20 at 11:56 PM
Moody’s Ratings changed VF Corp.’s outlook to stable from negative while affirming its Ba2 corporate family and Ba2-PD probability of default ratings. The agency also affirmed VF’s Ba3 senior unsecured debt ratings and upgraded its speculative-grade liquidity rating to SGL-2 from SGL-3, citing improving operations, cost controls and continued debt repayment.
VF repaid about
$583 million of debt in fiscal 2026 through free cash flow and the sale of its Dickies brand. Moody’s expects further deleveraging over the next year, including repayment of the April 2027 maturity with internal resources. Leverage and coverage are projected to improve to about 3.1x and 4.2x, respectively, by fiscal 2027, from 3.9x debt/EBITDA and 3.1x EBITA/interest for the 12 months ended June 27, 2026.
The Ba2 rating reflects VF’s position as one of the world’s largest apparel, footwear and accessories companies, with roughly
$9.5 billion in revenue.
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