The ratings of WKI Holding Company Inc. remain on CreditWatch with negative implications, where they were placed Sept. 6, 2000. The rating action reflects WKI Holding's limited liquidity position and weakened operating and financial performance following the 1999 acquisitions of EKCO Group Inc. and General Housewares Corp. Reduced earnings and increasing debt levels have resulted in lower debt protection measures, which are weak for the rating. In addition, the company is in negotiations with its bank group to amend its credit facilities due to potential covenant violations as of Dec. 31, 2000. The company's operating performance has been below Standard&Poor's expectations due to weak sales and increased costs associated with supply chain inefficiencies, price competition, and higher advertising
