S&P rates Fiesta Restaurant notes B

Standard & Poor's said that it assigned a B corporate credit rating to Fiesta Restaurant Group Inc.

The outlook is stable.

S&P assigned a B rating to the company's $200 million of second-lien secured notes. The notes were also assigned a 4 recovery rating to the debt, indicating average (30%-50%) recovery of principal in the event of default.

The company used proceeds from the note issuance and funds from a new term loan issued at Carrols LLC, a subsidiary of Carrols that operates Burger King restaurants, to pay Carrols' previous debt obligations.

The ratings reflect the expectation that the company's credit ratios will remain characteristic of a B rating, the agency said, given its participation in the very competitive restaurant industry and the view that the company's business risk profile is weak.

© 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.