S&P views Leggett & Platt negatively

S&P said it changed its outlook for Leggett & Platt Inc. to negative from stable and affirmed its ratings.

“The negative outlook reflects our view that weakening macroeconomic conditions and consumer sentiment will reduce the demand for a large portion of Leggett & Platt's products, causing its leverage to exceed 3x (our downgrade threshold for the current rating) in 2023. It also reflects our belief that the company's profitability, as measured by its EBITDA margin, will remain low, in the low-teen percent area, relative to that of its similarly rated peers. Therefore, we believe there is at least a one-in-three likelihood we will lower our rating over the next two years,” S&P said in a press release.

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