S&P lowers Sierra Enterprises

S&P said it lowered the ratings on Sierra Enterprises LLC and its first-lien senior secured facilities to B- from B. The 3 recovery rating on the senior secured debt remains unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery for lenders in a default scenario.

The agency also placed all its Sierra Enterprises ratings on CreditWatch with negative implications.

“Economic disruptions due to the accelerating spread of the coronavirus will severely impair Sierra's 2020 results and could pressure its credit measures through fiscal year 2021,” said S&P in a press release.

S&P said it aims to resolve the placement after it gets more information about the effects of the coronavirus on the U.S. out-of-home dining industry.

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