Moody’s cuts Checkers Holdings

Moody's Investors Service said it downgraded Checkers Holdings, Inc.'s debt ratings, including its corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

Moody's also downgraded Checkers’ senior secured first-lien term loan and first-lien revolving credit facility to B3 from B1.

The outlook is negative.

“The downgrade and negative outlook reflect Checkers weaker than expected operating earnings that has led to higher than anticipated leverage, an inability to coverage interest on an EBIT basis and weak liquidity which are unlikely to materially improve over the intermediate term,” Bill Fahy, Moody's senior credit officer, said in a news release.

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