S&P revises Lifetime Brands view to negative

S&P said it affirmed its B+ issuer credit rating on Lifetime Brands Inc. and revised the outlook to negative from stable.

At the same time, S&P affirmed its B+ rating on the company's $275 million loan B due 2025. The recovery rating on the senior secured term loan is 3, indicating expectations of meaningful (50% to 70%, rounded estimate 50%) recovery in the event of a payment default.

“The outlook revision to negative reflects our view that leverage for 2018 will remain elevated, just above 5x, after the company's lower-than-expected operating performance through the first half of 2018. This is above our previous expectation for leverage between 4x and 5x in 2018 and well above the 4x pro forma leverage at the close of its transaction to acquire Filament brands in March 2018,” S&P said in a news release.

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