S&P cuts Restaurant Technologies

S&P said it downgraded its ratings for Double Eagle Buyer Inc. (Restaurant Technologies Inc.) and its bank loans issued through Eagle Parent Corp., to B- from B.

The agency noted Double Eagle’s S&P Global Ratings-adjusted leverage has stayed above 6.5x since it borrowed incremental debt in 2022. Additionally, price swings in used cooking oil have hurt margins.

“We previously expected improved earnings to lower leverage to the 5x area, but a term loan upsize last year and a substantial softening in UCO prices in the first half of the year contributed to leverage remaining above 7x. We forecast leverage will remain elevated above our ratings threshold of 6.5x in the next two years as the company prioritizes its capital-intensive expansion strategy, which will limit any deleveraging,” S&P said in a statement.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.