Register, or Login to view the article
On December 17, 2020, Moody's Investors Service downgraded its corporate family rating on Brown Jordan Inc. to Caa1 from B3, its probability of default rating to Caa1-PD from B3-PD and its senior secured first lien term loan rating to Caa1 from B3. The downgrade reflects slowing demand for outdoor furniture products primarily within the hospitality sector, which represents approximately 40% of Brown Jordan's sales and will lead to significant underperformance in earnings and a deterioration in credit metrics relative to Moody's prior forecast, according to the ratings agency. The Company’s rating is constrained by very high financial leverage, which will remain above 7x over the next 12 months, the highly discretionary nature of the Company's products in the consumer segment as well as the resulting sensitivity to consumer spending levels and industry cyclicality.
Read more Bankruptcy News