LABL Inc. reported preliminary results for the first quarter of 2025 which were weaker than we anticipated. In addition, we believe heightened macroeconomic risks related to policy uncertainty, tariffs, and high interest rates could dampen consumer spending, reducing volume growth and weakening cash flow. Therefore, we revised our outlook on LABL to negative from stable and affirmed the ?B-? issuer credit rating. The negative outlook reflects our expectation for weaker volumes and a greater cash flow deficit compared to our previous forecast, which we believe will further pressure liquidity. Although we anticipate liquidity will remain adequate over the next 12-24 months, we believe sustained weaker credit measures could heighten refinancing risk if it does not address its 2027 maturities in
