Luxembourg-based Samsonite International S.A.'s performance has deteriorated as adverse global macroeconomic conditions continue to affect profitability, though leverage remains within expectations. We are affirming our 'BB+' issuer credit rating on Samsonite to reflect our view that the company should maintain leverage below 3x with continued strong cash flow generation and debt prepayment. We are also affirming our 'BBB-' issue-level ratings on the company's senior secured debt with a '1' recovery rating, and 'BB+' rating on its senior unsecured debt with a '4' recovery rating. We are revising our outlook to negative from stable to reflect the risk that unfavorable global macroeconomic headwinds will continue or intensify, leading to further operating performance deterioration such that leverage is sustained above 3x. We
