Moody’s stabilizes C.H. Guenther view

Moody’s said it changed its outlook for C.H. Guenther (CHG PPC Parent LLC) to stable from negative and affirmed its B2 ratings on the company and B1 ratings on its backed first-lien senior secured credit facilities, term loan and term loan B, and backed senior secured multicurrency revolving credit facility. The agency does not rate the second-lien term loan.

The outlook revision to stable from negative reflects the company's ongoing earnings recovery, which has resulted in reduced debt/EBITDA leverage and improved free cash flow. Specifically, EBITDA (on a Moody's adjusted basis) has increased roughly 18% over the last 12 months (LTM), resulting in debt/EBITDA leverage declining to 6.4x (on a Moody's adjusted basis) for the last 12-month (LTM) period ended June 24, 2023, compared to 6.9x for the LTM period ended June 25, 2022 (pro forma for the Nov. 21, 2021 acquisition of Baldinger and Bagos bakeries),” Moody’s said in a press release.

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