S&P ups Lifetime Brands

S&P said it upgraded its ratings for Lifetime Brands Inc. and its senior secured debt to B+ from B. The recovery rating remains 3, indicating an expectation for meaningful recovery (50%-70%; rounded recovery: 50%) in default.

“We raised the ratings because of improved operating performance and stronger credit metrics. Lifetime's sales continued to climb, reaching $607 million for the nine months ended Sept. 30, 2021. That is up 16.8% from $520 million for the nine months ended Sept. 30, 2020. Sales were $508 million for the nine months ended Sept. 30, 2019. Demand for kitchen accessories and supplies remained strong due to dining at home trends, and improved food service trends,” S&P said in a press release.

The company also improved profitability, increasing EBITDA margins to 13.3% for the 12 months ended Sept. 30, from 12.2% for the 12 months ended Dec. 31, 2020, driving down leverage to 3.3x for the 12 months ended Sept. 30 from 4.5x for the 12 months ended Dec. 31, 2020.

The outlook is stable.

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