S&P slices Wahoo

S&P said it lowered Wahoo Fitness Acquisition LLC’s issuer rating to CCC from B- and its senior secured credit facilities to CCC+ from B. The recovery rating remains 2, indicating substantial (70%-90%; rounded estimate: 70%) recovery in default.

“Wahoo's revenue and profits will be significantly weaker than our previous forecasts. The company's second quarter of 2022 results came in substantially below our expectations, impaired by fewer replenishment orders from retailers and higher costs related to freight and warehousing,” the agency said in a press release.

For fiscal year 2022, S&P said it sees unsustainably high leverage of more than 15x and a free operating cash flow deficit of about $40 million.

The outlook is negative.

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