VF Corp. credit rating cut to junk by S&P Global

S&P Global Ratings lowered VF Corp.’s (VFC) issuer credit rating from investment-grade to “BB” from “BBB-” and short-term and commercial paper ratings to “B” from “A-3”. VF Corp.’s fiscal Q2’s “weak earnings indicate that its portfolio of brands remains challenged and are still declining,” S&P said in a statement. It revised its forecast to reflect expectations for lower demand and the sale of Supreme. As a result, S&P estimates the company’s leverage will remain well above 4.5-to,es in fiscal 2025. The downgrade reflects a less favorable view of VF’s competitive position due to ongoing revenue declines in its top four brands and weaker credit ratios, the agency said.