S&P raises Tupperware

S&P said it upgraded Tupperware Brands Corp.’s issuer rating to B from CCC and removed all its ratings from CreditWatch, where it placed them with positive implications on Nov. 4.

The upgrade follows Tupperware’s redemption of its outstanding $380 million of senior unsecured notes due June 1, 2021, and close on its unrated $275 million of new term loan facilities, which comprise a $200 million term loan A and a $75 million term loan B.

“The upgrade reflects the company’s improved financial flexibility and liquidity following the refinancing of its near-term maturity,” S&P said in a press release.

The agency assigned a positive outlook. “The positive outlook on Tupperware reflects the possibility that we will raise our ratings in the next year if it sustains its improved organic revenue and EBITDA growth and demonstrates further progress in executing its business turnaround strategies such that it maintains debt leverage of less than 4x and free operating cash flow (FOCF) after capital expenditure (capex) of at least $60 million,” S&P said.

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