S&P trims Lakeland view to negative

S&P said it revised its outlook on Lakeland Holdings LLC to negative from stable and affirmed all of its ratings on the company, including the B corporate credit rating and B issue-level ratings on subsidiary Lakeland Tours LLC's senior secured term loan (including the proposed $85 million add-on).

The recovery rating is 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in the event of a payment default.

“The negative outlook reflects our expectation that total adjusted debt to EBITDA will be weaker than our 7x downgrade threshold over the next two years, due to the leveraging impact of the proposed add-on and acquisition combined with higher costs than we expected,” S&P said in a news release.

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