Moody's alters Bowlero view to negative

Moody's Investors Service said it changed the outlook to negative from stable and affirmed Bowlero Corp.'s B2 corporate family rating and B2-PD probability of default rating.

Additionally, Moody's affirmed the B2 rating on the first-lien credit facility, which includes a revolver and term loan B issued by Bowlero's subsidiary, Kingpin Intermediate Holdings, LLC. Moody's also assigned a negative outlook at Kingpin.

“Bowlero's negative outlook reflects the projected impact of the recent surge in the number of positive coronavirus cases and greater restrictions on the ability to operate locations during the company's seasonally strongest part of the year. Moody's expects Bowlero will still have good liquidity and will recover as the impact of the pandemic subsides, but leverage levels are projected to remain elevated over the next few years as the amount of debt has increased in 2019 and 2020,” the agency said in a press release.

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