Moody’s gives Quirch Foods B2, loan B3

Moody’s Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Quirch Foods Holdings, LLC. Concurrently, Moody’s assigned a B3 rating to the company’s new proposed senior secured term loan.

Proceeds will be used to finance Quirch’s acquisition of Colorado Boxed Beef Co.

“The combined company will have a strong position in an attractive market niche of distributing proteins and private label ethnic items to independent ethnic food retailers at an affordable price point with the increasing ethnic population being a tailwind for the company,” said Mickey Chadha, a Moody’s vice president, stated in a press release

The outlook is stable. “The stable rating outlook reflects our expectation that the company will continue to grow organically and will reduce leverage through EBITDA growth and debt reduction while maintaining good liquidity,” Moody’s said.

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