S&P affirms Tempur Sealy

S&P said it affirmed its ratings, including its BB corporate credit rating, on Tempur Sealy International Inc.

The outlook remains negative.

The agency also affirmed the BB issue-level rating on the company's $450 million and $600 million senior notes due 2023 and 2026, respectively. The 3 recovery rating indicates an expectation of meaningful (50%-70%, rounded estimate 60%) recovery in the event of a payment default.

S&P said the affirmation and sustained outlook reflect an expectation that operating performance will remain weaker during the first quarter of 2018 as Tempur Sealy incurs significant costs to launch its new Tempur Pedic product lines, resulting in lower-than-average profitability and leverage remaining above 4 times through at least the first two quarters.

© 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.