S&P cuts Samsonite International

S&P said it downgraded Samsonite International SA to B from BB-, the senior secured debt to B+ from BB and the senior unsecured debt to B- from B+.

“Our downgrade of Samsonite reflects our expectation of minimal EBITDA and ongoing cash burn through the remainder of 2020. As a result, we expect elevated leverage through 2021. International travel restrictions and consumers' reluctance to travel has resulted in a substantial deterioration of operating profitability that we do not expect will recover without a broad global Covid-19 vaccination program,” S&P said in a press release.

For the 12 months ended June 30, the agency said it forecasts Samsonite's adjusted leverage as 6.8x compared with 3x in the same prior-year period. “We now forecast fiscal 2020 EBITDA to be substantially negative,” S&P said.

The outlook is negative.

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