Custom window coverings manufacturer Hunter Douglas Finance B.V. is exposed to weakening discretionary demand for its products and incremental costs from announced Mexico tariffs. The company is taking mitigating actions to preserve profitability such as increasing pricing, improving productivity in its Mexico facilities, and raising labor efficiency. However, we believe there is risk it cannot fully offset higher costs or volume declines. Therefore, we revised our outlook on Hunter Douglas to negative from stable and affirmed all our ratings, including our ?B? issuer credit rating. Our ?B? issue-level rating and 3? recovery rating on the company?s term loans indicate our expectation of meaningful (50%-70%; rounded estimate: 55%) recovery in the event of default. The negative outlook reflects the potential for
