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Buffets Inc. Downgraded To 'D' From 'CCC' On Missed Interest Payment On First-Lien Term Loan Jan 12 Product Image

Buffets Inc. Downgraded To 'D' From 'CCC' On Missed Interest Payment On First-Lien Term Loan Jan 12

  • ID: 2041247
  • January 2012
  • Standard & Poors

Abstract
NEW YORK (Standard & Poor's) Jan. 10, 2012--Standard & Poor's Ratings Services said today that it lowered its corporate credit rating on Eagan, Minn.-based buffet-style restaurant operator Buffet Inc. to 'D' from 'CCC'. We also lowered our issue-level rating on the company's first-lien term loan due 2015 to 'D' from 'CCC'. The '3' recovery rating on the notes remains unchanged and indicates our expectation for meaningful (50% to 70%) recovery of principal in the event of a payment default. "The downgrade reflects Buffets' recently missed interest payment on its first-lien term loan," said Standard & Poor's credit analyst Andy Sookram. He added "We view the company's liquidity as "less than adequate" based on our criteria." Cash balances continue to decline...

Companies mentioned in this report are:
- Buffets Inc.

Action: Downgraded

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

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