Moody's trims Lifetime Brands

Moody's Investors Service said it downgraded Lifetime Brands, Inc.'s corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD, and senior secured term loan rating to B3 from B2. The company's speculative grade liquidity rating remains SGL-2.

“Today's ratings downgrade reflects Lifetime Brands' elevated financial leverage with debt/EBITDA at around 5.2x for the fiscal year-end period Dec. 31, 2022, up from 3.6x as of fiscal 2021, and Moody's expectations that leverage will remain high amid a challenging operating environment. Lifetime Brands reported a year-over-year revenue decline of 15.7% in fiscal 2022, and its profitability weakened considerably with company-adjusted EBITDA lower by 38.9%,” the agency said.

The agency also noted that retailers’ high inventory levels are hurting reorders and high inflation is curbing consumer spending for Lifetime’s products.

The outlook is stable.

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