Research Update: Samsonite International S.A. Upgraded To 'B+' On Improving Operating Performance, Outlook Positive

Luxembourg–based Samsonite International S.A. reported continued improvement in its operating performance through fiscal year 2021. Specifically, the company continued to benefit from its aggressive cost-cutting initiatives, capital expenditure (capex) reductions, and working capital management, which enabled it to generate $358 million of positive free operating cash flow (FOCF) and exceed our previous expectations. We raised our issuer credit rating on Samsonite to 'B+' from 'B', our issue-level rating on its senior secured debt to 'BB-' from 'B+', and our issue-level rating on its senior unsecured debt to 'B+' from 'B'. We expect Samsonite will continue to improve its credit metrics because the demand for domestic travel remains positive and government restrictions on international travel are easing. The positive outlook reflects

... reported continued improvement in its operating performance through fiscal year 2021. Specifically, the company continued to benefit from its aggressive cost-cutting initiatives, capital expenditure (capex) reductions, and working capital management, which enabled it to generate $358 million of positive free operating cash flow (FOCF) and exceed our previous expectations. - We raised our issuer credit rating on Samsonite to 'B+' from 'B', our issue-level rating on its senior secured debt to '##-' from 'B+', and our issue-level rating on its senior unsecured debt to 'B+' from 'B'. - We expect Samsonite will continue to improve its credit metrics because the demand for domestic travel remains positive and government restrictions on international travel are easing. - The positive outlook reflects that we could raise our ratings on the company over the next 12 months if it sustains its current credit metrics while navigating the challenging macroeconomic...

Research Update