Moody’s rates Wagamama notes B2

Moody's Investors Service said it changed the outlook on the ratings of Mabel Mezzco Ltd. (Wagamama) to stable from positive and affirmed the B2 corporate family rating and B2-PD probability of default rating.

Concurrently, the agency assigned a B2 (LGD 3) rating on the new £225 million senior secured notes due 2022 to be issued by Wagamama Finance plc.

This follows the company's announcement that it intends to refinance the existing £150 million senior secured notes, as well as to repay £60.7 million loan notes.

The ratings on the existing notes of Wagamama Finance will be withdrawn upon repayment.

"Moody's decision to affirm Wagamama's CFR and change the outlook to stable reflects the company's strong EBITDA growth achieved over the last twelve months, good top line growth resulting from new restaurant openings as well as above market like-for-like (LFL) sales growth, and improved EBITDA margins, which balance the debt increase in the context of the notes refinancing," Moody’s assistant vice president Emmanuel Savoye said in a news release.

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