Moody's affirms Cajun Funding notes

Moody's Investors Service said it affirmed Cajun Funding Corp.'s B2 corporate family rating and B3 rating on its second-lien secured notes.

At the same time, the SGL-3 speculative grade liquidity rating was also affirmed.

The outlook remains stable.

Cajun is the financing company affiliated with Church's Chicken restaurants, which are operated by Cajun Operating Co.

The rating affirmations reflect the established position of the Church's brand within the chicken QSR category, the recent track record for positive same-store sales growth and the domestic and international development potential of the concept.

The ratings also consider Church's high financial leverage, reliance on a single product, modest liquidity position and limited scale and scope in relation to its direct competitors.

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