S&P Raises NIKE Inc. (NKE) from 'A+' to 'AA-'; Outlook Stable

Standard & Poor's Ratings Services said today it raised its corporate credit rating on Beaverton, Ore.-based NIKE Inc. (NYSE: NKE) to 'AA-' from 'A+'. The outlook is stable. We also raised our unsecured debt rating to 'AA-' from 'A+'.

"The one notch upgrade reflects our view that NIKE's financial policy will remain "conservative" and that credit measures, supported by consistently solid operating performance, will remain strong," said credit analyst Linda Phelps. "We believe NIKE's strong credit metrics and liquidity provides good cushion given the highly competitive nature of the company's business, susceptibility of its products to changing consumer preference, and the possibility of modest changes to the company's longer-term financial policy, as we are uncertain what change in financial advice might arise if the company's founder relinquishes his currently significant control. Accordingly, we are revising our financial risk descriptor to "minimal" from "modest"."

Our rating outlook on NIKE is stable. We expect NIKE's credit measures to remain very strong while supporting the company's ongoing growth initiatives. Additionally, we believe NIKE's operating performance will be relatively stable. Read More :  Nike Inc.