Moody's views MillerKnoll negatively

Moody's Investors Service said it changed its outlook for MillerKnoll, Inc. to negative from stable and affirmed its ratings including the Ba1 ratings on the company's first-lien senior secured credit facilities.

The first-lien facility consists of a $725 million first-lien revolver due 2026, a $400 million original principal amount first-lien term loan A due 2026, and a $625 million original principal amount first-lien term loan B due 2028. Moody's also downgraded the company's speculative grade liquidity rating to SGL-2 from SGl-1.

“Moody's changed the rating outlook to negative because declining orders and a weakening economy are expected to reduce earnings and raise leverage in fiscal 2024. MillerKnoll's organic orders declined -9.2% during the second quarter ended Dec. 3, 2022, driven by organic orders decline in its Americas Contract segment of -16.2%. Weaker macro-economic conditions with persistently high inflation and rising interest rates are slowing business spending including corporate investments on return-to-office projects,” the agency said in a statement.

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