Research Update: SSH Holdings Inc. (Spencer Spirit) Upgraded To 'BB-' From 'B+' On Strong Performance And Deleveraging; Outlook Stable

Egg Harbor Township, N.J.-based novelty gift and Halloween retailer SSH Holdings Inc. (doing business as Spencer Spirit) reported strong sales momentum over the past year, especially for Halloween, which we believe reflects a permanent shift in demand. We raised our issuer credit rating on the company to 'BB-' from 'B+'. The outlook is stable. At the same time, we raised our issue-level rating on its senior secured term loan to 'BB-' from 'B+'. The '3' recovery rating is unchanged and indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default or bankruptcy. The stable outlook reflects our expectation for somewhat moderated Halloween sales in 2022 relative to 2021 records, sustaining leverage in the

...- Egg Harbor Township, N.J.-based novelty gift and Halloween retailer SSH Holdings Inc. (doing business as Spencer Spirit) reported strong sales momentum over the past year, especially for Halloween, which we believe reflects a permanent shift in demand. - We raised our issuer credit rating on the company to '##-' from 'B+'. The outlook is stable. - At the same time, we raised our issue-level rating on its senior secured term loan to '##-' from 'B+'. The '3' recovery rating is unchanged and indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default or bankruptcy. - The stable outlook reflects our expectation for somewhat moderated Halloween sales in 2022 relative to 2021 records, sustaining leverage in the mid- to high-1x area....

Research Update