Mattel raised to investment grade rating by S&P

S&P Global Ratings raised its issuer credit rating on Mattel to ‘BBB-‘ from ‘BB+’ stating in part: "Mattel has substantially improved its operations following years of good organic growth and should largely maintain its recent market share gains and margin improvement. As expected, retailers are undergoing a temporary but volatile inventory correction, reducing toy orders during the first half of this year following atypically strong order volumes during the first half of last year; accordingly, Mattel reported a significant decline in revenue and EBITDA in the first quarter of 2023. However, despite the anticipated volatility, Mattel’s underlying business showed resilience and strength. Per Circana, an American market research company formerly known as NPD, Mattel’s POS was up mid-single digits across all product categories in the first quarter and remained positive through April. Mattel also continued to gain market share across its three leader categories of Dolls, Vehicles, and Infant/Toddler/Preschool, with Barbie remaining the No. 1 global toy property in the doll category in the first quarter. We believe Mattel’s core brands continue to strengthen from a successful business strategy enabling design-driven product development and an ability to adapt more quickly to shifting play patterns and consumer preferences because its major brands are built around loyalty, repeat purchases, collecting, and cultural relevance."