Moody’s ups Bob’s Discount loan

Moody’s Investors Service said it upgraded BDF Acquisition Corp.’s (Bob’s Discount Furniture) senior secured term loan rating to B2 from B3. Concurrently, Moody’s changed Bob’s outlook to positive from negative and affirmed its B3 corporate family rating and B3-PD probability of default rating.

The term loan upgrade to B2 from B3 reflects the reduced reliance on the asset-based revolver, which has priority over the term loan in the liability waterfall and increased support from vendor payables and leases due to continued store expansion, Moody’s said.

The outlook change reflects Bob’s strong operating performance and improvement in liquidity after its stores reopened, driven by the consumer’s focus on the home as a result of the pandemic and a favorable housing market, the agency said.

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