...October 18, 2022 - Office and residential furniture manufacturer MillerKnoll Inc.'s organic order trends have decelerated and turned negative. As a result, we no longer believe the company will strengthen credit metrics in fiscal 2023 consistent with our prior expectations, which included adjusted leverage below 3x. We now forecast 2023 adjusted leverage in the high-3x area. - S&P Global Ratings economists now forecast a shallow recession in the U.S. during the first half of 2023. - We lowered our issuer credit rating on MillerKnoll to '##' from '##+' and our rating on its senior secured bank credit facility to '##+' from '###-'. The recovery rating remains '2', indicating our expectations for substantial (70%-90%; rounded estimate: 75%) recovery in the event of a payment default. - The negative outlook reflects the potential for a lower rating over the next 12 months if we forecast the company will sustain adjusted leverage over 4x or free operating cash flow (FOCF) falls well below our...
