S&P: Fossil Group view now negative

Standard & Poor’s said it revised the outlook on Fossil Group Inc. to negative from stable and affirmed all of the ratings on the company, including the BBB- corporate credit rating.

“The outlook revision reflects our belief Fossil Group’s operating results will continue to be pressured over the next 12 months because it faces foreign exchange headwinds, slower economic growth in key markets, and competitive pressures in the industry,” said S&P credit analyst Mariola Borysiak in a news release.

“We now expect debt to EBITDA will increase to about 2.2x at end of 2015 and will remain at about 2.0x in 2016, before declining to below 2x in 2017. These measures are significantly weaker than our previous expectations for debt leverage remaining in the 1.5x area,” the agency said.

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