Moody's Ratings upgraded Wolverine World Wide, Inc.'s corporate family rating to B1 from B2 on Wednesday, citing improved operating performance, leverage and liquidity supported by a turnaround in its Merrell and Saucony brands.
The rating agency also raised the company's senior unsecured global notes to B2 from B3 and upgraded its speculative-grade liquidity rating to SGL-2 from SGL-3. The outlook remains stable.
Moody's-adjusted debt to EBITDA declined to 4.1x as of April 4, 2026 from 5.3x as of June 30, 2025, while EBITA to interest expense improved to 3.7x from 2.8x.
Merrell and Saucony, which represent almost two-thirds of revenue, continue to benefit from product innovation, broader distribution and strong sell-through. Merrell is supported by momentum in hiking and trail running, while Saucony benefits from strength in both performance running and lifestyle.
The liquidity upgrade reflects expectations for good liquidity over the next 12 to 18 months, including $60 million to $80 million of annual free cash flow, significant availability under the $600 million revolving credit facility, ample covenant cushion and no near-term debt maturities.
Moody's projects the company's adjusted debt to EBITDA will decline to mid-3x over the next 12 to 18 months reflecting earnings improvement and revolver paydown, while EBITA to interest expense improves to mid-4x.
The B1 corporate family rating reflects Wolverine's ownership of Merrell and Saucony, which are well-recognized brands in the outdoor and running categories. The company's turnaround and portfolio rationalization since 2024 has significantly improved profitability.
Moody's noted the company's brands have limited scale and operate in highly competitive and fashion-sensitive footwear and apparel categories. Wolverine has yet to turn around its smaller brands, with Sweaty Betty stabilizing by reinvesting in its core UK market and the Wolverine brand continuing to decline.
