Moody’s upgrades credit outlook for Bass Pro

Moody’s Investors Service Inc. improved Bass Pro Group LLC’s credit outlook, following two consecutive downgrades for the Springfield-based outdoor retailer.

Bass Pro Group, dba Bass Pro Shops, now has a stable outlook, up from negative in March, according to a news release issued last week. Moody’s does not expect the company’s credit rating to change in the next 12-18 months. Bass Pro’s credit outlook previously was marked as stable in September 2019.

“The ratings affirmation reflects Bass Pro's good liquidity, established market position in the sports and outdoors category and the resiliency of its earnings, which are supported by the sizable and stable credit card income,” Moody’s officials said in the release. “In addition, Bass Pro’s diverse product assortment and value price points mitigate earnings pressure in economic downturns.”

The credit rating agency noted in the release that Bass Pro’s rating also benefits from the company’s good liquidity over the next 12-18 months, including a solid cash balance. However, Moody’s officials said Bass Pro “needs to make ongoing investments in its brand and infrastructure, as well as in social and environmental drivers including responsible sourcing, product and supply sustainability, privacy and data protection.”

Moody’s also affirmed Bass Pro’s senior secured term loans, and probability of default and corporate family ratings, in the B range, meaning adequate capital to meet financial commitments.

Bass Pro ranked No. 3 on Springfield Business Journal's list this year of the area's largest employers, with 6,000 employees within a 50-mile radius of Springfield. The company reported 40,000 companywide employees for the July 13 list. Forbes research in September estimates $6.5 billion in annual revenue for the outdoor retailer.