S&P gives B, CCC+ to Focus Brands loans

Standard & Poor's said it assigned B issue-level and 3 recovery ratings to Focus Brands Inc.'s first-lien credit facilities and a CCC+ issue-level rating and a 6 recovery rating to the second-lien facility.

The B corporate credit rating remains unchanged.

The outlook is stable.

"The ratings on Focus Brands reflect our assessment that the company's business risk profile will continue to be 'weak,' based on its relatively small-size presence in the highly competitive quick-service restaurant industry, partly offset by its good brand diversity," S&P analyst Andy Sookram said in a statement.

"Our view of its financial risk profile as 'highly leveraged' incorporates elevated debt levels, thin cash flow protection measures, and our expectation that debt-financed dividends will continue beyond the next one to two years."

With the forecast for EBITDA growth and lower debt, leverage will drop to 5.6x, according to the agency.

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