Moody’s Affirms Red Lobster Debt Rating, but Downgrades Outlook to Negative
SEAFOODNEWS.COM November 16, 2017
Moody’s released an updated rating on Red Lobster’s $380 million of debt securities today. Moody’s affirmed the debt ratings B3 for corporate debt, which is unchanged.
However, they lowered their long term outlook from stable to negative.
"The change in outlook reflects the company's persistently high leverage and modest interest coverage due in part to continuing weak operating trends." stated Bill Fahy, Moody's Senior Credit Officer. "The affirmation of the B3 CFR considers Moody's expectation that Red Lobster's liquidity will remain strong with the company remaining free cash flow positive and maintaining material unrestricted cash balances" stated Fahy .
Moody’s said “Red Lobster's B3 Corporate Family Rating reflects the company's high leverage, ...
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