Moody's cuts Mattress Holdings

Moody's Investors Service said it downgraded Mattress Holdings Corp.'s corporate family and probability-of-default ratings to B3 from B2, and senior secured credit facilities to B2 (LGD3, 33%) from B1 (LGD3, 35%).

The outlook is negative.

According to the agency said, the downgrades reflect the company's weak credit metrics, negative comparable store sales trend and tight covenant headroom.

The company's debt-to-EBITDA ratio rose to 7.5 times.

Moody's said the negative outlook reflects expected continuation of weak economic conditions over the next year and concern for limited cushion under the company's financial covenants, which contractually tighten several times over the next 12 months.

© 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.