Moody's downgrades Lifetime Brand

Moody's Investors Service said it downgraded Lifetime Brands, Inc.'s (Lifetime) corporate family rating to B1 from Ba3, probability of default rating to B1-PD from Ba3-PD and senior secured term loan rating to B2 from B1. The outlook was changed to negative, and the speculative grade liquidity is unchanged at SGL-2.

"Today's ratings downgrade and outlook change to negative reflect the company's subdued pace of deleveraging versus our expectations because of ongoing operating and execution challenges. The challenges include margin pressure due to tariffs and operational issues Lifetime experienced with consolidating its U.K. operations, resulting in still elevated financial leverage," said Oliver Alcantara, Moody's lead analyst for Lifetime, in a press release.

"Considering our expectation for only modest earnings growth over the next 12 months, credit metrics will remain weak with debt-to-EBITDA leverage at around 5x," added Alcantara.

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