S&P cuts Perkins notes

Standard & Poor's said it lowered the issue-level rating on Perkins & Marie Callender's Inc.'s $190 million of senior notes to C from CC. The recovery rating on this debt remains at 6, indicating the expectation of negligible (0%-10%) recovery for noteholders in the event of a payment default.

The corporate credit rating on Perkins is CC and remains unchanged.

The outlook is negative.

Perkins is vulnerable to default as its liquidity sources may not be sufficient to cover its cash uses, including interest payments in the near term, S&P said.

The ratings reflect the view that the company will not be able to service its existing debt and will need to consider alternatives regarding its highly leveraged capital structure, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.