International Flavors&Fragrances Outlook Revised To Negative On Delayed Deleveraging, 'BBB-' Rating Affirmed

International Flavors&Fragrances Inc.'s (IFF) recent and projected operating performance has weakened. As a result, the company received lender consent for an amendment to loosen its maximum debt-to-EBITDA covenant. While we believe the company is still committed to debt reduction and working toward its 3x leverage target, the covenant amendment signals that its deleveraging path may be slower than we previously expected. We affirmed our 'BBB-' issuer credit rating on IFF and revised the outlook to negative from stable. The negative outlook indicates that we could lower the ratings over the next two years if we believe the company will not be able to reduce leverage to and sustain it in the low-4x area because of operating challenges or

...March 27, 2023 - International Flavors & Fragrances Inc.'s (IFF) recent and projected operating performance has weakened. As a result, the company received lender consent for an amendment to loosen its maximum debt-to-EBITDA covenant. - While we believe the company is still committed to debt reduction and working toward its 3x leverage target, the covenant amendment signals that its deleveraging path may be slower than we previously expected. - We affirmed our '###-' issuer credit rating on IFF and revised the outlook to negative from stable. - The negative outlook indicates that we could lower the ratings over the next two years if we believe the company will not be able to reduce leverage to and sustain it in the low-4x area because of operating challenges or delayed asset sales. CHICAGO (S&P Global Ratings) March 27, 2023--S&P Global Ratings today took the rating actions listed above. The outlook revision reflects the increased risk that the company will not deleverage in line with our...

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