The ratings reflect WKI Holding Company Inc.'s limited liquidity position and continued weak 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 credit protection measures that are below Standard&Poor's expectations. Liquidity remains tight with availability of $6.3 million on $325 million in revolving credit facilities as of Aug. 13, 2001. WKI Holding's operating performance has been below Standard&Poor's expectations due to weak sales, unfavorable product mix, and increased costs associated with supply chain inefficiencies and price competition. Further, the integration of ECKO and General Housewares proved to be more challenging than originally anticipated. The company's new management is in the
