Moody's lowers Mrs. Field's secured ratings

Moody's Investors Service said it downgraded the corporate family rating of Mrs. Field's Famous Brands to Caa1 from B3 and the senior secured ratings to Caa1 from B3, withdrew the Caa1 long-term unsecured issuer rating and changed the outlook to negative.

The rating actions reflect increasing store closures and declining EBITDA levels; high financial leverage and diminishing free cash flow generation and poor operating performance at the TCBY brand, the agency said.

The ratings are supported by a declining but still sizable franchisee royalty stream augmented by a growing gifts business, a portfolio of established brand names with modest diversification plus minimal required capital expenditures and operating leases to operate its franchisor business model, the agency said.

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