S&P lowers Wolverine World Wide

S&P said it lowered its ratings for Wolverine World Wide Inc. to BB- from BB, its senior secured credit facilities, including the $1 billion revolver and $200 million term loan, to BB from BBB- and its $550 million of senior unsecured notes to B+ from BB-. The agency also revised the senior secured recovery rating to 2 from 1. The 5 recovery rating on the unsecured notes is unchanged.

“Wolverine's operating performance for the past few quarters was considerably below our expectations due to deteriorating macroeconomic conditions, heightened promotional activities, and ongoing supply chain disruptions. Sales in U.S. wholesale, Wolverine's largest channel, were below expectations as shipment delays due to logistics and warehouse congestion hurt the company's brands, such as its namesake, Sperry, Keds, Sweaty Betty and Saucony,” the agency said in a statement.

S&P said it forecasts Wolverine’s adjusted leverage of high-5x at the end of 2022 and sees persistent leverage above 4x ahead.

The outlook is stable.

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