S&P trims FXI

S&P said it lowered its ratings for FXI Holdings Inc. and its first-lien debt, which includes its senior secured notes maturing in 2024 and 2026 to CCC+ from B-. The 4 recovery rating on the first-lien debt is unchanged.

“We expect the company's 2022 EBITDA and credit metrics will be weaker than in 2021 because of the depressed conditions in its cyclical end markets. While FXI performed well in 2021 when the economic recovery spurred rising demand in its end markets, we believe the economic slowdown in 2022 has negatively affected its revenue and profitability due to the reduced demand in the bedding, comfort, and furniture end markets,” the agency said in a press release.

“Additionally, we expect that the weakness in its operating performance will cause its weighted-average debt to EBITDA to rise close to the double digits, which we view as unsustainable,” S&P added.

The outlook is negative.

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