Buffets Inc. Downgraded To 'D' From 'CCC' On Missed Interest Payment On First-Lien Term Loan Jan 12
- ID: 2041247
- January 2012
- Standard & Poors
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.
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