Moody’s reviews VF for downgrade

Moody’s Investors Service said it placed VF Corp.’s long term ratings on review for downgrade, including its A3 senior unsecured debt rating.

The review for downgrade follows VF’s announcement it agreed to acquire Supreme Holdings, Inc., a direct-to-consumer focused streetwear apparel & accessories company, in an all-cash transaction valued at around $2.1 billion-plus an additional earnout based on revenue and gross margin performance.

VF plans to fund the deal with around $1.5 billion of balance sheet cash and $500 million of commercial paper, Moody’s said.

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