S&P trims Tupperware

S&P said it lowered its rating for Tupperware Brands Corp. to CCC+ from B and the rating on the company’s $600 million of senior unsecured notes due 2021 to CCC from B-. The recovery rating is 5 indicating expectations for modest (10%-30%) recovery in the event of a payment default.

The agency also removed the ratings from CreditWatch with negative implications, where it placed them on Feb. 26.

“The downgrade reflects the likelihood of further profitability and cash flow deterioration. Because of the rapid spread of the coronavirus pandemic, we believe that Tupperware will experience accelerated declines in revenues and EBITDA for fiscal 2020, resulting in debt leverage rising above 5x,” said S&P in a press release.

The outlook is negative.

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