S&P trims Burger BossCo

S&P said it lowered its ratings on Burger BossCo Intermediate Inc. and its debt facilities to CCC- from CCC. The 3 recovery rating is unchanged.

“The CCC- rating reflects our belief that a default or distressed debt restructuring appears inevitable within the next six months. The downgrade reflects the risk that Burger BossCo is unlikely to refinance its upcoming April 2023 maturities at par. Therefore, we believe a distressed exchange is increasingly likely. We believe the company's liquidity is limited and that the accrual of PIK interest on its second-lien debt and preferred equity continues to challenge the overall capital structure,” S&P said in a press release.

The outlook is negative.

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