Moody’s cuts Steak n Shake, facilities

Moody's Investors Service said it downgraded Steak n Shake Inc.'s corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD and senior secured revolving credit facility and term loan to B3 from B1.

The outlook is stable.

"The downgrade reflects the continued challenging operating environment with higher operating costs and reductions in traffic that have compressed the company's operating margins and weakened credit protection measures," Moody's assistant vice president, analyst Adam McLaren said in a news release.

The agency expects weak same restaurant sales and operating performance will lead to leverage rising to over 6 times.

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