S&P affirms VF

Standard & Poor's said it affirmed the A- long-term and A-2 short-term corporate credit ratings on VF Corp.

The outlook is negative.

The agency said it removed those ratings from CreditWatch, where they were placed with negative implications in June following news that the company entered into a definitive agreement to acquire the Timberland Co. for about $2 billion net of cash acquired.

The ratings reflect the company's strong business profile given its good market positions in outdoor and action sports and jeans, its portfolio of well-recognized brand names and consistently good operating performance, S&P said.

The agency said it believes the addition of the Timberland platform will be complementary to VF's existing businesses.

S&P said it expects the company's credit metrics to weaken modestly following completion of the transaction and there are some integration risks given the large size of the transaction.

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