S&P nicks Instant Brands

S&P said it lowered its ratings on Instant Brands Holdings Inc. and its first-lien term loan to B- from B. The recovery rating remains 3, indicating meaningful (50%-70%; rounded estimate: 55%) recovery in default.

“The downgrade reflects Instant Brands' weak operating performance and higher-than-expected leverage through the second quarter of fiscal 2022. The company's revenue declined 28.6% and 16.6% year-over-year during the second and first quarters of fiscal 2022, respectively,” S&P said in a press release.

The agency said it now forecasts Instant Brands’ adjusted leverage to remain above 10x through 2023; whereas, it had estimated the company lowering leverage to 6x by the end of 2022.

The outlook is negative.

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