Fitch trims Fanatics

Fitch Ratings has downgraded the long-term issuer default ratings for Fanatics Holdings, Inc. (FHI), and its subsidiary Fanatics Collectibles Intermediate Holdco, Inc. (Collectibles), to B+ from BB-. The agency affirmed Collectibles' senior secured credit facilities, including its senior secured revolving credit facility and senior secured term loan, at BB+/RR1.

“The downgrade reflects Fitch's expectations that FHI's EBITDA could be negative in 2023 before returning to positive territory in 2024, driven primarily by challenges in the Commerce segment and investments in FHI's various subsidiaries, to leading leverage being sustained at higher levels than previously expected,” the agency said in a press release.

Fitch warned FHI’s leverage could be “very high” in 2023 and 2024 before decreasing to under 5x in 2025.

The outlook is stable.

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