Moody's upgrades J.Crew

Moody's Investors Service said it upgraded Chinos Intermediate 2 LLC's (J.Crew) ratings, including the corporate family rating to B2 from B3, probability of default rating to B2-PD from B3-PD and senior secured term loan rating to B2 from B3. The outlook was changed to stable from positive.

“The upgrade reflects J.Crew's earnings recovery and significant deleveraging in 2021, as the company benefited from a low level of promotions across the apparel sector due to constrained inventory and strong consumer demand. Coming out of the 2020 bankruptcy and pandemic, J.Crew has also operated with significantly lower overhead and rent expense, driven by the closure of over 20% of J.Crew stores and rent concessions. These factors allowed J.Crew to slightly exceed 2019 profitability, despite high shipping costs and still-depressed store traffic,” Moody’s said in a press release.

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