S&P changes GPD outlook to negative

S&P said it changed its outlook for GPD Cos. Parent Inc. to negative from stable and affirmed the B- ratings on the company and its senior secured notes. The 4 recovery rating (rounded estimate: 40%) on the notes is unchanged.

“We now anticipate leverage will remain elevated for the rating over the next year. Specifically, we project S&P Global Ratings-adjusted debt to EBITDA of 7.5x-8.5x over the next 12 months. During fiscal year 2022, significant market deflation depressed GPD's unit gross margins on higher-cost inventory. Excess inventory levels, which the company subsequently addressed in the first quarter of 2023, intensified this impact,” the agency said in a press release.

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