Moody's lowers Caribbean Restaurants

Moody's Investors Service said it downgraded Caribbean Restaurants, LLC's corporate family rating to B3 from B2, probability of default rating to B3 from B2 and changed outlook to negative.

Concurrently, Moody's said it affirmed the B1 rating of the company's $210 million senior secured credit facilities.

The agency noted that the downgrade of CFR to B3 reflects that Caribbean's continuously declining operating performance is resulting in deteriorating credit metrics that are more commensurate with a low single B rating.

Moody's said it anticipates that the key contributing factors to the company's underperformance, such as recessionary economic conditions in Puerto Rico, a high inflationary environment and the ever-intensified competitions among quick service restaurants, are likely to persist over an extended period, thus keeping the company from improving its performance and credit metrics within the rating horizon.

© 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.