S&P cuts MillerKnoll

S&P said it lowered its issuer credit rating on MillerKnoll Inc. to BB from BB+ and the rating on its senior secured bank credit facility to BB+ from BBB-. The recovery rating remains 2, indicating expectations for substantial (70%-90%; rounded estimate: 75%) recovery in the event of a payment default.

The outlook is negative.

“Office and residential furniture manufacturer MillerKnoll Inc.'s organic order trends have decelerated and turned negative,” S&P said in a news release.

“As a result, we no longer believe the company will strengthen credit metrics in fiscal 2023 consistent with our prior expectations, which included adjusted leverage below 3x. We now forecast 2023 adjusted leverage in the high-3x area.”

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