Tupperware Brands Corp. Downgraded On Coronavirus Impact And Refinancing Risk; Outlook Negative
We are lowering our issuer credit rating on Tupperware to 'CCC+' from 'B' to reflect heightened refinancing risk and our belief that operating performance for fiscal 2020 will weaken substantially as many markets close and stay-at-home orders are prolonged, limiting the operations of sales representatives.
Concurrent with the downgrade, we are lowering the issue-level rating on Tupperware's $600 million senior unsecured notes due 2021 to 'CCC' from 'B-'. The recovery rating is '5', indicating our expectation for modest (10%-30%) recovery in the event of a payment default.