Moody’s improved its outlook for Nike’s debt from “negative” to “stable,” due to its recent strong growth in revenues and earnings, “powered by its successful execution of its Consumer Direct Acceleration strategy.” The rating agency confirmed all other ratings for the company, including an A1 senior unsecured debt rating, pointing to its very strong liquidity, supported by over $15 billion in cash and short-term investments, plus an undrawn revolving credit. It expects Nike to “navigate successfully” through the near-term challenges from supply chain disruptions. It added that its rating “is constrained by the inherent cyclicality and changing consumer preferences in the global footwear and apparel industries and high concentration of revenue in a single brand.” It didn’t comment on the modest contribution from Converse to the company’s results.

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