S&P Global Ratings raised Wolverine Worldwide’s debt ratings due to the company’s smaller revolver commitment and repayment of its term loan.
The rating agency stated that Wolverine’s actions reduced the amount of secured debt outstanding at emergence under its simulated default scenario.
Rating raised was Wolverine’s $600 million amended and extended revolver due September 24, 2030, to ‘BB-‘ from ‘B+’, with the revised recovery rating lifted to ‘1’ from ‘2’. The ‘1’ recovery rating indicates S&P’s expectation for very high (90 percent to 100 percent; rounded estimate: 95 percent) recovery in the event of a payment default.
At the same time, S&P affirmed its ‘B-‘ issue-level rating on the company’s $550 million senior notes due 2029. The ‘5’ recovery rating is unchanged, indicating its expectation for modest (10 percent-30 percent, rounded estimate: 20 percent) recovery in the event of a payment default.
In addition, S&P withdrew its ‘B+’ issue-level rating and ‘2’ recovery rating on Wolverine’s term loan A facility because it has been repaid.
S&P’s ‘B’ issuer credit rating and stable outlook on Wolverine are unchanged. S&P noted the Wolverine has improved its S&P Global Ratings-adjusted leverage to 5x for the 12 months ended June 28, 2025. Wolverine had total debt outstanding of about $708 million as of June 28, 2025.
The company’s capital structure comprises a $600 million revolving credit facility due September 24, 2030; a $125 million accounts receivable securitization facility, which S&P views as priority debt; and $550 million of senior unsecured notes due 2029.
Image courtesy Wolverine Worldwide
