The two reports, issued simultaneously, both revise the outlook on Tendam’s rating from stable to positive

These upgrades recognise the resilience of Tendam’s results in a volatile environment, its omni-channel strategy and its commitment to reducing debt, among other factors

The rating agencies S&P Global and Moody’s have both upgraded the outlook on the rating for Tendam Brands, one of Europe’s leading omni-channel specialist fashion retailers, from stable to positive. The reports, published in the last two days, both highlight the strength of Tendam’s results, expectations of continued growth in revenues and profitability, and the governance policy in relation to reducing debt, which signals efficient financial cost management and a commitment to ongoing deleveraging.

S&P Global

S&P Global has raised the outlook on its B+ rating from stable to positive. In its report, rating agency S&P attributes this upgrade, among other factors, to the fact that the company’s results “are proving resilient in the current inflationary macroeconomic environment, thanks to its diversified portfolio of own brands and its third-party brand offering, which enables Tendam to capture a large customer base.” It also highlights that Tendam continues to expand its portfolio of brands, building a variety of fashion styles “that capture current trends, target multiple customer demographics, and enables the group to remain attractive in a volatile macroeconomic environment.”

S&P Global also applauded the Tendam 5.0 strategy, which is now in its second phase and will allow for further convergence towards an omni-channel model and, in terms of profitability, should allow the company to benefit from some cost relief, in particular on energy and transportation.

The rating agency further praised the prepayment by Tendam of €190 million in senior notes maturing in 2028, adding that it views this transaction as credit-positive, as it decreases Tendam’s interest payment and indicates the group’s willingness to deleverage its capital structure.


Moody’s has also raised the outlook on Tendam’s B1 rating from stable to positive. In its report, Moody’s points to Tendam’s robust recovery following the pandemic and its expectations of continued growth in revenue and profitability as well as solid free cash flow (FCF) generation over the next 12-18 months.

The rating action by Moody’s is also supported by the company’s strong brand and established position in the Spanish apparel market; its good EBITDA margin, underpinned by an efficient supply chain and a successful omni-channel distribution model; as well as its good liquidity.

The positive outlook also considers the decision by Tendam’s management to partially redeem outstanding senior secured notes, which signals a commitment to deleverage over time.

On 16 October, Tendam Brands announced the early redemption of €190 million of its €300 million backed senior secured floating rate notes maturing in 2028. This early redemption and debt restructuring will reduce the Group’s annual interest payments by more than 20%, affording it a strong competitive advantage and allowing it to step up its growth plans. The early redemption was delivered via a two-part strategy: the provision of funds from the company’s own cash reserves and a loan for over €180 million linked to sustainability targets, which was signed in July 2023.

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