Moody's rates Crocs Ba3, notes B1

Moody's Investors Service said it gave first-time ratings to Crocs, Inc., including a Ba3 corporate family rating, a Ba3-PD probability of default rating and an SGL-2 speculative grade liquidity rating. Concurrently, Moody's assigned a B1 rating to Crocs' proposed $300 million of unsecured notes.

“The Ba3 CFR assignment incorporates governance considerations, particularly Crocs' conservative financial strategies which support low debt levels and good liquidity. Moody's adjusted debt/EBITDA, pro forma for the notes issuance, is 1.6x at Dec. 31, 2020. The rating is constrained by the company's modest scale, single brand and limited product diversification with the majority of sales derived from the sale of the clog,” the agency said in a press release.

The proceeds will be used to repay the $180 million balance under its revolving credit facility. The rest of the proceeds will be used for general corporate purposes.

The outlook is stable, reflecting a forecast of sales growth while maintaining good liquidity and sustaining profit margins over the next 12-18 months, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.