Moody's upgrades Nathan’s Famous

Moody's Investors Service said it upgraded Nathan's Famous, Inc.'s corporate family rating to B2 from B3 and its $150 million, with $110 million outstanding, of senior secured notes rating to B2 from B3. The agency also affirmed Nathan's B2-PD probability of default rating, and the speculative grade liquidity rating remains unchanged at SGL-2.

"The upgrade reflects Nathan's materially lower debt levels and stable operating trends that have resulted in stronger credit metrics with debt to EBITDA of about 3.5 times for the LTM period ending June 26, 2022," stated Bill Fahy, a Moody's senior credit officer, in a press release.

In late January, Nathan’s repaid about $40 million of its outstanding $150 million of senior secured notes. The remaining notes mature in November 2025 and any call premium on the notes falls away in November 2022.

The outlook is stable.

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