Moody's raises Wok Holdings

Moody's Investors Service said it upgraded Wok Holdings Inc.'s corporate family rating to Caa1 from Caa2 and probability of default rating to Caa2-PD from Caa3-PD. Moody's also raised Wok Holdings' senior secured bank credit facilities to Caa1 from Caa2. The outlook is stable.

"The upgrade and stable outlook reflects our expectation that the gradual improvement in same store sales will continue as government restrictions are scaled back driving higher earnings and result in lower leverage, improved coverage and stronger liquidity over time," stated Bill Fahy, a Moody's senior credit officer, in a press release.

"However, the ratings and outlook also consider the company's current high leverage and weak interest coverage with an inability to cover interest expense on an EBIT basis," Fahy added.

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