Research Update: High Liner Foods Inc. Outlook Revised To Positive On Improving Leverage; ?B? Rating Affirmed

Healthy operating performance spurred by pricing actions and solid volume growth has allowed Lunenberg, N.S.-based High Liner Foods Inc. to significantly improve its top line and EBITDA compared with our previous expectations. We expect High Liner will maintain a debt-to-EBITDA ratio in the 3.5x-4.0x range through fiscal 2023, which is consistent with our thresholds for an upgrade. As a result, S&P Global Ratings revised the outlook on High Liner to positive from stable. At the same time, we affirmed our 'B' issuer credit rating on the company and our 'B+' issue-level rating on High Liner's senior secured term loan B. The '2' recovery rating on the debt is unchanged, indicating our expectation of substantial (70%-90%; rounded estimate: 70%) recovery in

...- Healthy operating performance spurred by pricing actions and solid volume growth has allowed Lunenberg, N.S.-based High Liner Foods Inc. to significantly improve its top line and EBITDA compared with our previous expectations. - We expect High Liner will maintain a debt-to-EBITDA ratio in the 3.5x-4.0x range through fiscal 2023, which is consistent with our thresholds for an upgrade. - As a result, S&P Global Ratings revised the outlook on High Liner to positive from stable. - At the same time, we affirmed our 'B' issuer credit rating on the company and our 'B+' issue-level rating on High Liner's senior secured term loan B. The '2' recovery rating on the debt is unchanged, indicating our expectation of substantial (70%-90%; rounded estimate: 70%) recovery in a default scenario. - The positive outlook indicates the possibility we could raise the ratings on High Liner in the near term as the company continues to sustain improved operating performance by exhibiting resiliency amid challenging...

Research Update