Moody’s moves AHF outlook to negative

Moody’s Investors Service said it revised its outlook for AHF Parent Holding Inc. to negative from stable and affirmed the B2 ratings on the company and its $215 million first-lien term loan due 2028.

“The change to a negative outlook reflects AHF's high financial leverage and meaningfully weaker organic operating results amid weakening demand and Moody's expectations that demand pressures will persist into 2023. Persistently high inflation, rising interest rates, and weakening macroeconomic conditions is negatively affecting spending on discretionary goods, including hard flooring products,” the agency said in a press release.

AHF year-over-year organic revenue dropped in the high teens percentage range for the 3Q 2022 period with debt/EBITDA for the last 12 months ended Sept. 30 at 5.4x.

However, Moody’s said it affirmed the ratings because the recent acquisition of Armstrong Flooring Inc. diversified the company's products and end markets, and helped offset AHF's base business earnings pressures.

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