Moody’s stabilizes Mister Car Wash view

Moody’s Investors Service said it revised its outlook for Mister Car Wash Holdings, Inc. to stable from positive and affirmed the B2 ratings on the company and its credit facility.

The stable outlook and rating affirmation reflect the view that lease-adjusted debt/EBITDA will remain above 5x over the next 12-18 months, driven mostly by continued sale-leasebacks of the company's greenfield locations and the inflationary cost environment which is limiting earnings growth.

“As such, Mister Car Wash's leverage over the next 12-18 months is not expected to meet Moody's upgrade trigger of debt/EBITDA sustained below 5x,” the agency said in a press release.

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