Moody's downgrades Aspire Bakeries

Moody's Investors Service said it downgraded Aspire Bakeries Holdings, LLC’s ratings, including the company's corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, the senior secured first-lien revolving credit facility and senior secured first-lien term loan to B2 from B1 and the senior secured second-lien term loan to Caa2 from Caa1.

“The rating downgrades reflect elevated leverage and weak free cash flow due to inflationary cost pressure, high interest bearing debt, and working capital needs. Moody's projects that debt/EBITDA will increase from 5.5x (on a Moody's-adjusted basis) as of Oct. 31, 2021, to approximately 6.4x by the end of fiscal 2022 ended July, due to inflationary pressure. Moody's expects a gradual EBITDA recovery in the following fiscal year as pricing catches up to costs, assuming supply chain and inflationary pressures normalize,” Moody’s said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.