S&P drops KNS outlook to negative

S&P said it revised its outlook for KNS Holdco LLC to negative from stable and affirmed its B ratings on the company, its revolving credit facility and its senior secured first-lien term loan. The recovery rating is 3, indicating meaningful (50%-70%; rounded estimate: 65%) recovery in default.

In 2022, KNS estimated that financial vulnerability affecting older consumers, who are the company’s core age group, resulted in $22 million and $9 million of lost revenue and EBITDA, respectively. S&P said it sees this trend persisting in 2023.

“The negative outlook reflects our expectation than KNS will incur higher costs in 2023 in order to sustain its return to top-line growth, and we forecast S&P Global Ratings-adjusted leverage will be in the high-6x area at year end,” the agency said in a press release.

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