S&P lowers Outerstuff

U.S. youth sports apparel manufacturer Outerstuff LLC recently reported its year-end 2018 and first-quarter 2019 operating results. The company's EBITDA deteriorated significantly more than we had anticipated over the past two quarters and we now view its capital structure as unsustainable at this level of profitability.

S&P said it lowered its issuer credit rating on Outerstuff LLC to CCC+ from B-.

At the same time, S&P lowered its issue-level rating on the company's asset-based lending facility to B+ from BB- and the issue-level rating on its term loan to CCC+ from B-.

The outlook is negative.

“Outerstuff's profitability in the fourth quarter of 2018 and first quarter of 2019 was well below our expectations and we now view its capital structure as unsustainable,” S&P said in a news release.

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