Moody's changes Caleres view to positive

Moody's Investors Service said it changed Caleres, Inc.'s outlook to positive from negative and affirmed the company's ratings, including the B2 senior unsecured notes rating. The speculative grade liquidity rating was upgraded to SGL-1 from SGL-3.

“The change in outlook to positive from negative reflect Caleres' significant earnings recovery coming out of the coronavirus pandemic and Moody's view that credit metrics will continue to improve driven by debt repayment and further earnings normalization towards pre-pandemic levels over the next 12-18 months,” the agency said in a press release.

The SGL upgrade reflects expectations for nearly $150 million in free cash flow in 2021 and more than $300 million in excess availability under the $600 million asset-based revolving facility, following the repayment of a significant portion of 2020 revolver borrowings, Moody’s explained.

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