High Liner Foods Inc. Outlook Revised To Negative From Stable On Weaker-Than-Expected Credit Metrics; 'B+' CCR Affirmed

High Liner Foods Inc.'s 2017 EBITDA and margins were negatively affected by changing product mix, underutilization at the company's facilities, and underperformance at Rubicon Resources LLC, which High Liner acquired in May 2017. Weak EBITDA and higher borrowings to fund working capital at year-end led to leverage increasing to 6x in 2017. As a result, we are revising our outlook on High Liner to negative from stable. At the same time, we are affirming all our ratings on the company, including our 'B+' long-term corporate credit rating. The negative outlook is based on our expectation that High Liner will be pressured to increase its margins to historical levels due to lower demand in its core breaded and battered products, rising

...+ High Liner Foods Inc.'s 2017 EBITDA and margins were negatively affected by changing product mix, underutilization at the company's facilities, and underperformance at Rubicon Resources LLC, which High Liner acquired in May 2017. + Weak EBITDA and higher borrowings to fund working capital at year-end led to leverage increasing to 6x in 2017. + As a result, we are revising our outlook on High Liner to negative from stable. + At the same time, we are affirming all our ratings on the company, including our 'B+' long-term corporate credit rating. + The negative outlook is based on our expectation that High Liner will be pressured to increase its margins to historical levels due to lower demand in its core breaded and battered products, rising input costs, and a shifting product mix. This situation could lead to weaker-than-expected credit measures and an increased risk that the company might not recover from the 2017 setbacks. TORONTO (S&P Global Ratings) Feb. 26, 2018--S&P Global Ratings...

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