S&P cuts Lifetime Brands

S&P said it lowered its issuer credit rating on Lifetime Brands Inc. to B from B+. The outlook is stable.

S&P also lowered the issue-level ratings on the senior secured term loan to B from B+; the recovery rating is unchanged at 3, indicating expectations of meaningful (50%-70%; rounded estimate:50% recovery in a default.

“The downgrade reflects the deterioration in profitability in 2018 and our expectation for leverage to remain elevated well above 5x over the next 12 months,” S&P said in a news release.

“We estimate that pro forma leverage rose to 6.4x as of Dec. 31, 2018. This is above our previous expectation for leverage between 4x-5x in 2018, and well above the 4x pro forma leverage at the close of its transaction to acquire Filament brands in March 2018.”

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