Research Update: Empire Today LLC Rating Raised To 'B' On Improved Credit Measures; Outlook Stable Feb 13
- Language: English
- Published: February 2013
The speculative-grade ratings on Chicago-based Empire Today LLC reflect Standard & Poor's Ratings Services' expectation for credit ratios to remain indicative of a "highly leveraged" financial risk profile (as defined in our criteria) and for financial policies to remain very aggressive. We forecast the ratio of adjusted total debt to EBITDA will exceed 5x, funds from operations (FFO) to total debt will remain below 12%, and EBITDA coverage of interest will remain in the mid-1x area through 2013. Our "vulnerable" business risk assessment (as defined in our criteria) incorporates our analysis that the company has a narrow business focus in the replacement flooring industry, heavily relies on effective TV advertising to generate customer leads, and remains vulnerable to weak discretionary...
Companies mentioned in this report are: Empire Today LLC
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Empire Today LLC