Moody’s maintained Foot Locker’s Ba1 corporate family rating after a periodic review.

Moody’s wrote, “Foot Locker’s Ba1 Corporate Family Rating reflects its solid credit metrics and low level of funded debt, well-recognized brand names, meaningful scale, geographic diversification, and very good liquidity. Key constraints include the Company’s high vendor concentration, narrow focus on the fashion-sensitive premium athletic footwear and apparel market, and financial policy, which favors share repurchases and dividends, as well as its high operating leases that will make it difficult for the Company to materially reduce leverage from its current level.”

The rating agency noted that Moody’s practice has been to issue a press release following each periodic review to announce its completion since January 1, 2019. The company said the release is not an indication of whether or not a credit rating action is likely in the near future.