S&P revises Wells Enterprises view to negative

S&P said it revised the outlook to negative from stable and affirmed all ratings, including the B+ issuer credit rating, on Wells Enterprises Inc.

“The negative outlook reflects the potential for a lower rating over the next 12 months if we project the company will sustain leverage above 5x. This could occur if it underperforms our forecast and fails to improve profitability and cash flow,” S&P said in a news release.

Iowa-based ice cream producer Wells Enterprises reported weaker-than-expected 2021 financial results, including leverage of 6.8x compared with 4.4x in the prior-year. Manufacturing constraints and higher input costs contributed to the higher leverage, S&P said.

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