High Liner Foods Inc. Outlook Revised To Negative From Stable On Demand Decline Stemming From COVID-19 Outbreak

The COVID-19 pandemic is leading to a growing number of closures of restaurants, schools, and other institutions. An emphasis on social distancing to avoid spreading the coronavirus is also significantly reducing restaurant traffic. This situation, along with the looming risk of a recession, could result in demand declines and affect value-added seafood processor High Liner Foods Inc. in the near term. We expect High Liner's debt-to-EBITDA ratio to weaken to about the mid-6x area in fiscal 2020. Therefore, S&P Global Ratings revised its outlook on High Liner to negative from stable. At the same time, S&P Global Ratings affirmed all of its ratings on the company, including the 'B' long-term issuer credit rating on High Liner. The negative outlook reflects

...April 7, 2020 - The COVID-19 pandemic is leading to a growing number of closures of restaurants, schools, and other institutions. An emphasis on social distancing to avoid spreading the coronavirus is also significantly reducing restaurant traffic. - This situation, along with the looming risk of a recession, could result in demand declines and affect value-added seafood processor High Liner Foods Inc. in the near term. We expect High Liner's debt-to-EBITDA ratio to weaken to about the mid-6x area in fiscal 2020. - Therefore, S&P Global Ratings revised its outlook on High Liner to negative from stable. At the same time, S&P Global Ratings affirmed all of its ratings on the company, including the 'B' long-term issuer credit rating on High Liner. - The negative outlook reflects heightened risks that High Liner's credit metrics will materially weaken as the company's operating performance suffers due to restaurant closures and our forecast of a global recession in 2020. An extended period...

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