Moody's snips Container Store

Moody's Investors Service said it downgraded the Container Store, Inc.'s senior secured term loan to B2 from B1, its corporate family rating to B2 from B1 and its probability of default rating to B2-PD from B1-PD Its speculative grade liquidity rating remains SGL-3.

“The downgrades reflect the continuing weakness in its product categories which has weighed on its operating performance and credit metrics as debt interest costs rise. Moody's expects continued comparable store sales weakness and margin compression which will result in EBIT/interest of around 1x and debt/EBITDA of 3.6x in fiscal 2023,” the agency said in a press release.

Moody’s said it does expect an improvement by the end of fiscal 2024 with adjusted debt/EBITDA of 3.1x and EBIT/interest expense of 1.4x.

The outlook remains 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.