Research Update: High Liner Foods Inc. Upgraded To 'B+' On Improved Credit Metrics, Outlook Stable

Nova Scotia-based value-added frozen seafood provider High Liner Foods Inc. improved its debt to EBITDA to 3.0x as of year-end 2023, from 3.6x the previous year, through material debt repayment. The company's inventory sell down provided it with significant free operating cash flow (FOCF), which it used to repay balance sheet debt. We expect High Liner's exposure to the foodservice segment and disciplined cost controls will support stable EBITDA over the next 12 months. The company has successfully managed its business through the challenging business conditions over the past two years while maintaining a steady operating performance. Due to its sustained operating performance and lower debt levels, we forecast its S&P Global Ratings-adjusted debt to EBITDA will be in the

...- Nova Scotia-based value-added frozen seafood provider High Liner Foods Inc. improved its debt to EBITDA to 3.0x as of year-end 2023, from 3.6x the previous year, through material debt repayment. The company's inventory sell down provided it with significant free operating cash flow (FOCF), which it used to repay balance sheet debt. - We expect High Liner's exposure to the foodservice segment and disciplined cost controls will support stable EBITDA over the next 12 months. The company has successfully managed its business through the challenging business conditions over the past two years while maintaining a steady operating performance. Due to its sustained operating performance and lower debt levels, we forecast its S&P Global Ratings-adjusted debt to EBITDA will be in the 2.75x-3.00x range while it maintains FOCF to debt of more than 10% over the next 12 months. - Therefore, we raised our issuer credit rating on High Liner to 'B+' from 'B' and our issue-level rating on its senior secured...

Research Update