Fitch ups Wok Holdings withdraws ratings

Fitch Ratings said it upgraded the long-term issuer default rating of Wok Holdings, Inc. to B- from CCC+ with a stable outlook and simultaneously withdrew the ratings. Fitch also boosted the company's first-lien credit facility to B-/RR4 and were then withdrawn.

“Wok's rating reflects the company's leading market position in the full-service Asian category as well as its negative FCF, small scale relative to other large casual chain dining concepts, and the secular challenges within the casual dining segment. The upgrade reflects the company's improved margin performance despite the negative top line impact from the pandemic, driven by cost cuts and operational improvements, which has resulted in leverage improving to the mid-6x area,” the agency said in a press release.

Fitch said it withdrew the ratings for commercial reasons.

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