S&P upgrades HMK Mattress

Standard & Poor’s said it raised the corporate credit rating on HMK Mattress Holdings LLC to B from B-.

The agency also said it raised the rating on the company’s term loan to B from B-. The 3 recovery rating is unchanged, reflecting 50% to 70% expected default recovery.

The outlook is stable.

The upgrades reflect a turnaround from weaker 2014 results after the company successfully executed its enhanced national marketing strategy under a new chief marketing officer, S&P said.

The agency also said it expects continued store growth in the coming year.

The industry is increasingly competitive due to attractive profit margins and new entrants from home-improvement stores to off-price retailers, S&P said.

But Sleepy’s is expected to grow its market share through enhanced inventory management and utilization of a large new distribution center in Illinois, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.