S&P rates Wolverine notes BB+, term loan BBB

S&P said it affirmed the BB+ corporate credit rating on Wolverine World Wide Inc. and revised the outlook to negative from stable.

The agency also said it affirmed the BBB rating on the company's first-lien credit facilities and assigned a BB+ rating to the proposed senior unsecured notes.

The recovery rating on the first-lien facilities is unchanged at 1, indicating 90% to 100% expected default recovery.

The recovery rating on the proposed senior unsecured notes is 4, indicating 30% to 50% expected default recovery.

S&P also said it assigned a BBB rating and 1 recovery rating on the incremental term loan A-1.

The company's adjusted debt is estimated at about $960 million as of June 30, which includes an adjustment for operating leases, the agency added.

The negative outlook reflects the possibility that Wolverine may not restore credit metrics and cash flow in line with the base-case forecast should the operating environment continue to weaken in the second half of 2016, S&P said.

The company started a restructuring program that should result in margin expansion but it is too soon to determine if it will be successful, the agency explained.

The retail environment also is expected to remain difficult, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.