S&P changes WKI Holding to negative

Standard & Poor's said it affirmed its corporate credit rating on WKI Holding Co. Inc. (World Kitchen) at B and revised the outlook to negative from stable.

At the same time, the agency affirmed its issue-level rating on the $342 million senior secured facility, which includes a $90 million revolving credit facility due 2018 and a $252 million term loan due 2019, at B. The recovery rating remains 3, indicating an expectation for meaningful (50%-70%) recovery of principal in the event of default.

"The negative outlook reflects our expectation that covenant cushion could remain well below 15% in the second and third fiscal quarters of this year and next if adjusted EBITDA does not improve from current levels," S&P credit analyst Stephanie Harter said in a news release.

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