Moody's changes IRB outlook to negative

Moody’s Investors Service said it revised its outlook for IRB Holding Corp. to negative from stable. The agency also affirmed all of IRB's ratings including its B2 corporate family rating, its B2-PD probability of default rating, the B2 rating on its senior secured credit facilities and the B2 rating on its senior secured notes.

“The outlook change to negative reflects IRB's weaker-than-expected performance over the past several quarters, with slowing same-store sales and persistently high commodity and labor inflation driving lower profitability and increasing its already very high financial leverage. As of July 3, 2022, Moody's adjusted debt/EBITDA deteriorated to over 9.5 times and free cash flow-to-debt was around 1.7%; both were well below the needed levels indicated to maintain the B2 rating,” the agency said in a press release.

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