Moody's downgrades Brinker

Moody's Investors Service said it downgraded Brinker International, Inc.'s corporate family rating to Ba3 from Ba1, probability of default rating to Ba3-PD from Ba1-PD, guaranteed senior unsecured notes to B2 from Baa3 and senior unsecured non-guaranteed notes to B2 from Ba1. Also, Brinker's speculative grade liquidity rating was downgraded to SGL-4 from SGL-2. All ratings remain under review for further downgrade.

"The downgrade reflects the expectation for a severe deterioration in both earnings and credit metrics that are driven by the closure of in-store dining across Brinker's entire restaurant base due to efforts to contain the spread of the coronavirus including recommendations from federal, state and local governments," said Bill Fahy, a Moody's senior credit officer, in a press release.

"While many restaurants are still able to continue to provide take-out, curbside pick-up and delivery, total restaurant sales will still be substantially below normal operating levels for the typical casual dining restaurant," Fahy said.

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