25th Mar 2021 19:08
(Alliance News) - Moody's Investors Service on Thursday upgraded to B1 from B2 the corporate family rating and upgraded to B1-PD from B2-PD the probability of default rating of Mabel Mezzco Ltd, trading as Wagamama.
Concurrently, the rating agency has upgraded to B1 from B2 the rating of the GBP225 million backed senior secured notes issued by the company's subsidiary Wagamama Finance PLC.
The outlook of both entities has changed to stable from negative.
Wagamama is a restaurant chain, serving Asian food, and is a part of Restaurant Group PLC.
Moody's said the rating action follows the debt refinancing and equity raise announced earlier this month by Restaurant Group. The outstanding notes issued by Wagamama Finance will be repaid upon closing of the refinancing, expected by May.
The stable outlook, meanwhile, balances the possibility that Wagamama's profitability and that of Restaurant Group could in due course exceed pre-pandemic levels against the company's limited scale and focus on a single brand, as well as the risk that the recovery from the pandemic could yet be derailed or delayed.
Going forward, the ratings agency noted that downward pressure on the rating could arise if trading conditions and performance do not improve in the months ahead.
Restaurant Group shares closed 1.8% lower in London on Thursday at 116.90 pence each.
By Evelina Grecenko; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
RTN.L