S&P changes Chefs' Warehouse to stable

S&P said it revised its outlook on Chefs' Warehouse Inc. to stable from positive and affirmed its B corporate credit rating on the company.

At the same time, the agency affirmed its B issue-level rating on the company's $280 million senior secured first-lien term loan and $50 million senior secured first-lien delayed-draw term loan. The recovery rating on the senior secured facilities is 3, reflecting an expectation for meaningful (50% to 70%, at the high end of the range) recovery in the event of a default.

Debt outstanding as of June 24, was about $346 million.

"Our outlook revision to stable from positive primarily reflects Chefs' inability to manage the effects of protein deflation at its Del Monte Capital Meat Co., which it acquired in April 2015," S&P credit analyst Gerald Phelan said in a news release.

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