Dick’s SG’s Senior Unsecured Debt Offering Earns “BBB” Rating from S&P

S&P Global Ratings assigned its ‘BBB’ issue-level rating to Dick’s Sporting Good’s Inc.’s $382 million senior unsecured debt issued as part of its previously announced exchange offer and consent solicitation for subsidiary Foot Locker Inc.’s senior notes due in 2029.

According to S&P, “An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.” It’s the rating agency’s fourth-highest rating below AAA, AA and A.S&P noted that as part of the Foot Locker transaction, Dick’s tendered roughly 95.5 percent of Foot Locker Inc.’s $400 million notes, with the remaining 4.5 percent (approximately $18 million) expected to remain obligations of Foot Locker (unrated). S&P forecasts pro-forma S&P Global Ratings-adjusted leverage of roughly 1.7x for fiscal 2025, pending financial details.

Dick’s completed its acquisition of Foot Locker on September 8, 2025, forming an entity operating more than 3,200 locations in 20 countries.

S&P said its other ratings on Dick’s, including the ‘BBB’ issue-level rating on its $750 million senior unsecured notes due in 2032 and $750 million senior unsecured notes due in 2052, ‘BBB’ issuer credit rating and positive outlook are unchanged. S&P expects to withdraw all ratings under Foot Locker upon completion of the debt exchange.