S&P lowers Restoration Hardware

S&P said it lowered the issuer credit rating on Restoration Hardware Inc. (RH) to B+ from BB-.

S&P also lowered the rating on RH's secured debt to B+ from BB-; the 3 recovery rating is unchanged and indicates an expectation for meaningful (50%-70%; 50% rounded estimate) recovery in the event of default.

The outlook is stable.

Restoration Hardware repurchased 17% of total shares outstanding ($1.2 billion), eroding credit metrics, S&P said.

“We now project S&P Global Ratings-adjusted leverage will remain above our previous 4x downgrade threshold in 2023 and 2024,” S&P said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.