S&P turns Lifetime view to stable

S&P said it revised the outlook for Lifetime Brands Inc. to stable from negative and affirmed its B ratings on their company and its senior secured debt. The 3 recovery rating is unchanged and indicates our expectation for a meaningful recovery (50%-70%; rounded recovery: 50%) in the event of a payment default.

“Demand recovery and cost-cutting initiatives will support improved earnings, driving stronger credit metrics compared to our previous expectations when the pandemic began. The company's leverage declined to 4.8x for the 12 months ended Sept. 30, 2020, compared to 7.4x for the same prior-year period. This decline was due to stronger-than-expected consumer demand for kitchenware products domestically, driving top-line sales growth of 3.2% for the quarter ended Sept. 30, 2020, over the same prior-year period,” S&P said in a press release.

The agency said it sees the increased demand for Lifetime’s products continuing into the first half of next year due to more cooking at home because of the pandemic.

© 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.