S&P turns Torrid view to positive

S&P said it turned Torrid LLC’s outlook to positive from stable and affirmed the B ratings on the company and its term loan.

“The positive outlook reflects our view that Torrid's performance has rebounded from weaker results in 2020. It also reflects our expectation that Torrid will sustain recent improved credit metrics in 2022 and sustain leverage below 3x. Torrid reported a 31% increase in revenue for fiscal 2021 (ended Jan. 29, 2022), supported by a similar increase in comparable sales,” S&P said in a press release.

The agency also noted Torrid’s S&P Global Ratings-adjusted EBITDA margins improved to about 23% in 2021 from 14% in 2020 as it benefitted from sales leverage, cost-containment efforts and lower promotional activity.

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