S&P moves Wens view to negative

S&P said it revised its outlook on Wens Foodstuff Group Co. Ltd. to negative from stable and affirmed its BBB- issuer rating before withdrawing the ratings at Wens’ request.

Substantially higher volatility in hog prices than S&P had anticipated will produce a marked spike in Wens’ debt leverage,” the agency said.

“The company's debt leverage, as measured by the debt-to-EBITDA ratio, is likely to be much weaker this year than our previous expectation of 2.4x. We now forecast that Wen's debt leverage could exceed 6x by end-2021 before declining to below 2.5x in the second half of 2022,” S&P said in a press release.

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