Moody's ups Denny's to SGL-2

Moody's Investors Service said it upgraded Denny's Corp.'s speculative-grade liquidity rating to SGL-2 from SGL-3.

The agency also said it affirmed the company's B2 corporate family rating and revised its probability of default rating to B3 from B2.

Moody's also said it affirmed its B1 rating on its $60 million senior secured revolving credit facility and $250 million senior secured term loan.

The upgrade reflects a more stable earnings stream as it moves to a more asset light business model and a much lower interest burden given the material repayment of debt, the agency said.

The ratings also consider Denny's relatively new management team, high leverage soft consumer spending, Moody's said.

© 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.