S&P revises High Liner view to stable

S&P said it revised High Liner Foods Inc.’s outlook to stable from negative and affirmed its ratings, including the B rating on its $300 million term loan with a 3 recovery rating.

“The pandemic-induced increase in at-home food consumption, new business wins, and a preference shift toward higher-margin branded value-added products boded well for High Liner. These favorable consumption trends combined with operating cost savings led to meaningful improvement in the company’s EBITDA, margins, and credit measures for the last 12 months ended Sept. 30, 2020, compared with our previous expectations,” S&P said in a press release.

The agency said it forecasts positive trends to continue through 2021, though at a slower pace.

“We believe the company can sustain EBITDA in the 4.5x-5x range over the next 12 months, a level we believe sufficiently supports the rating,” S&P said.

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