Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers I > Headlines for Instant Brands Holdings Inc. > News item |
Moody's downgrades Instant Brands
Moody's Investors Service said it downgraded Instant Brands Holdings Inc.'s ratings including the rating on the company' first-lien term loan due 2028 to B1 from Ba3.
“Today's ratings downgrade reflects Instant Brands' elevated financial leverage and negative free cash flows following lower than previously expected revenue and profitability during the second half of 2021. Starting during the third quarter of fiscal 2021, very high freight costs and supply chain disruptions resulted in delayed new product launches ahead of the important holiday selling season. Also, port disruptions contributed to historically long order lead times, and Instant Brands made the strategic decision to cancel orders and also reduced the volume of promotional sales during the fourth quarter,” Moody’s said in a press release.
The agency noted it does not expect “any meaningful recovery in operating profits” in the fourth quarter.
The outlook is stable.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.