Moody's downgrades Red Lobster

Moody's Investors Service said it downgraded Red Lobster Management LLC's corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

Moody's also downgraded Red Lobster's senior secured bank credit facility to Caa1 from B3. The outlook is negative.

"The downgrade reflects our expectation for a material deterioration in Red Lobster's earnings and credit metrics that are driven by the restrictions and closures across Red Lobster's restaurant base due to efforts to contain the spread of the coronavirus including recommendations from federal, state and local governments," stated Bill Fahy, a Moody's senior credit officer, in a press release.

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