DISTRESSED DAILY: Shutterfly At Risk Amid Rising Interest Rates

Photography and photo products company Photo Holdings LLC is threatened by tightening liquidity as consumers pull back on spending and required payments on the company’s floating rate debt rise.

The company, which does business as Shutterfly Inc., is likely to struggle during a potential shallow recession given the discretionary nature of its business, according to S&P Global Ratings. Any savings consumers had from stimulus is likely to quickly disappear, analysts Oliver Vandestouwe and Chris Mooney wrote in a note Friday.

Shutterfly’s capital structure is composed of nearly 60% floating-rate debt, making it particularly sensitive to rising interest rates. Its ...