On April 2, 2002, Standard&Poor's lowered its corporate credit, senior secured bank loan, and subordinated debt ratings on WKI Holding Company Inc. The outlook is negative. The downgrade reflects WKI Holding's public statement that it is working with financial advisors to explore strategic alternatives, including the possible need for a court-supervised proceeding to facilitate the financial restructuring of the company. The company is not expected to make the next interest payment on its subordinated notes, which is due May 1, 2002, because it would cause the waiver of the bank covenant defaults to expire. WKI Holding has stated there is substantial doubt about its ability to continue as a going concern. The ratings will be lowered to 'D'
