Moody’s ups Men’s Wearhouse, rates loan Ba3

Moody's Investors Service said it assigned a Ba3 rating to the proposed $900 million senior secured credit facility of Men's Wearhouse, Inc.

At the same time, the agency upgraded Men's Wearhouse's corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD from B1-PD, and unsecured note rating to B2 from B3.

The Ba3 ratings on the company's existing senior secured credit facility due 2021 were affirmed and will be withdrawn upon completion of the proposed refinancing transaction, Moody’s said.

The SGL-2 speculative grade liquidity rating was also affirmed.

The outlook is stable.

"The upgrade reflects Men's Wearhouse's improved operating performance and meaningful debt repayment, as well as our expectation that credit metrics will further improve over the next 12-18 months from earnings growth and debt reduction," Moody's assistant vice president Mike Zuccaro said in a news release.

"Additionally, the refinancing will extend the company's debt maturity profile, with the earliest maturity now coming in 2022."

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