Moody's lifts Dave & Buster's view to positive

Moody's Investors Service said it changed Dave & Buster's Inc.'s outlook to positive from stable and upgraded the senior unsecured notes rating to B3 from Caa1.

The agency also said it affirmed Dave & Buster's corporate family rating at B3, probability of default rating at B3-PD , $50 million senior secured revolving credit facility due 2015 at Ba3 (LGD 2, 12%) and $148 million senior secured term loan due 2016 at Ba3 (LGD 2, 12%).

The agency also upgraded its $200 million senior unsecured notes due 2018 to B3 (LGD 4, 58%) from Caa1 (LGD 4, 58%).

The outlook revision reflects Dave & Buster's solid operating performance in recent periods characterized by positive comparable-store revenues and expanding operating margins, the agency said.

The outlook change also considers an expectation that positive comparable-store revenues will be sustained and further improve leverage, the agency said.

The ratings reflect the company's past aggressive financial policy, including a dividend recapitalization in 2011, Moody's said.

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