S&P puts Samsonite on watch

S&P said it placed Samsonite International SA’s ratings on CreditWatch with negative implications, citing the potential effect of the global coronavirus outbreak on international travel.

“In December 2019, we revised our outlook on the company to negative to reflect its elevated leverage due to the contraction in its EBITDA margins stemming primarily from lower travel to U.S. gateway cities – largely from Chinese travelers – because of heightened trade tensions. The company's adjusted leverage for the 12 months ended Sept. 30, 2019, was 3x, which leaves it with limited headroom under our 3x downside threshold for the current rating,” said S&P in a press release.

S&P intends to resolve the CreditWatch listing in the next 90 days after it evaluates the company's fiscal-year 2020 results and the global spread and impact of the coronavirus.

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