Fitch ratings dropped its long-term issuer default ratings for Fanatics Holdings and subsidiary Fanatics Collectibles from B+ to BB- while maintaining a BB+/RR1 for Collectibles’ senior secured credit facilities. The downgrade was driven by EBITDA leverage concerns as the company relies on its liquidity to shore up slipping revenues and higher investments in various parts of the business. Fitch gave the ratings a stable outlook.

The ratings agency expects EBITDA could land in the red for FY ’23, as softer consumer demand at the Commerce (licensed apparel) segment met boosted investments in ... Log in to view full article.