Moody's stabilizes MIC Glen view

Moody's Investors Service said it changed MIC Glen LLC's outlook to stable from positive.

Concurrently, the agency affirmed all of MIC Glen's ratings, including its B2 first-lien senior secured term loan and revolving credit facility ratings and its Caa2 second-lien term loan rating.

“The affirmation and outlook change to stable reflects the challenging operating environment for restaurant operators, including meaningful inflation in primary commodity costs and labor expenses. At the same time, inflationary pressures are also impacting consumers' disposable income. Should inflation pressures persist, margin contraction would lead to reduced operating cash flow, hampering the company's growth plans and targeted credit metric improvement,” Moody’s said in a press release.

The outlook also considers the issuer’s liquidity and that new restaurants will be paid for through cash flow, the agency said.

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