S&P lowers Lifetime view to negative

S&P said it lowered its outlook for Lifetime Brands Inc. to negative from stable and affirmed the B+ ratings on the issuer and its term loan. The loan’s 3 recovery rating, indicating meaningful (50%-70%; rounded recovery: 50%) recovery in default, is unchanged.

“The outlook revision to negative reflects Lifetime's weaker-than-expected operating performance and our expectation that leverage will remain elevated through 2022. Lifetime's sales declined by 18.9% year over year in the second quarter of fiscal year 2022 after a 6.6% year-over-year sales decline in the first quarter,” the agency said in a press release.

S&P warned it could downgrade Lifetime’s ratings within the next 12 months if leverage climbs above 5x due to a decline in profitability.

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