S&P cuts GPS Hospitality

S&P said it downgraded the ratings on GPS Hospitality Holding Co. LLC and its $305 million senior secured credit facility to CCC+ from B-. The 3 recovery rating on the facility remains unchanged.

“The downgrade reflects our expectation that GPS Hospitality Holding Co. LLC's (GPS') heavy debt burden, along with our expectation for limited improvement in its operating performance (including risks associated with the coronavirus outbreak), may render the company's capital structure unsustainable over the long term. We believe the company's volatile operating performance makes it vulnerable to unfavorable business and financial conditions to meet its commitments in the long term,” said S&P in a press release.

The outlook is negative.

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