S&P drops Samsonite outlook to negative

Standard & Poor's said it revised its outlook on Samsonite Corp. to negative from stable.

At the same time, it affirmed ratings on the company, including the BB- corporate credit rating.

The agency added that the revised outlook follows the company's announcement that it plans to issue a $175 million special dividend to the company's shareholders, which it believes reflects a more aggressive financial policy and will result in higher pro forma debt leverage.

According to S&P, the ratings on Samsonite reflect its aggressively leveraged financial profile, narrow business focus and exposure to the travel-and-tourism industry, adding that these factors are somewhat offset by the company's strong market position as a leading global manufacturer and distributor of luggage, casual bags, business cases and other travel-related products.

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