In June 2022, HUGO BOSS has received strong investment-grade inaugural ratings by rating agencies S&P and Moody’s. While S&P rated HUGO BOSS ‘BBB’ with a stable outlook, Moody’s assigned the Company a ‘Baa2’ rating, also with a stable outlook. This puts HUGO BOSS among the highest-rated companies in the global premium apparel industry. These two strong investment-grade ratings are clear evidence of the Company’s strong brand perception, sound financial position, and attractive long-term growth opportunities. They further strengthen the Company’s financing flexibility, thus providing further scope to continue to successfully execute “CLAIM 5” in the coming years.
HUGO BOSS has at its disposal a revolving syndicated loan of EUR 600 million, providing additional financial flexibility for the successful execution of “CLAIM 5”. The proceeds of the facility can be used for general corporate purposes. Concluded in November 2021, it has a term of three years including two options for extending the term by one year each and an option to increase the credit volume by up to EUR 300 million. The first extension option has already been exercised successfully. The syndicated loan contains a standard covenant requiring the maintenance of financial leverage, defined as the ratio of net financial liabilities (including lease liabilities in accordance with IFRS 16) to EBITDA. As of December 31, 2022, financial leverage totaled 1.1, thus well below the maximum permissible level (December 31, 2021: 1.1). The syndicated loan is classified as sustainable finance, with the applicable interest rate being linked to the fulfillment of defined ESG criteria. At the end of fiscal year 2022, the loan was utilized for guarantees issued amounting to EUR 22 million and for the supplier financing program amounting to EUR 60 million (December 31, 2021: EUR 18 million for guarantees, EUR 63 million for the supplier financing program).
To further secure liquidity, HUGO BOSS possesses committed and uncommitted bilateral credit lines totaling EUR 191 million (December 31, 2021: EUR 204 million), of which EUR 102 million was drawn down at the end of the reporting period (December 31, 2021: EUR 116 million). In addition, HUGO BOSS had at its disposal cash and cash equivalents in the amount of EUR 147 million at the end of 2022 (December 31, 2021: EUR 285 million). Notes to the Consolidated Financial Statements, Note 14, Financial Position, Consolidated Statement of Cash Flows and Free Cash Flow
The Group’s liabilities totaled EUR 1,991 million at the end of the fiscal year (December 31, 2021: EUR 1,796 million), corresponding to a 64% share of total assets (December 31, 2021: share of 66%). Of this amount, EUR 804 million was attributable to current and non-current lease liabilities (December 31, 2021: EUR 795 million), primarily relating to the rental of retail store locations as well as logistics and administration properties. Current and non-current financial liabilities totaled EUR 122 million at the end of fiscal year 2022 (December 31, 2021: EUR 135 million). Net Assets, Notes to the Consolidated Financial Statements, Notes 9 and 20