Moody’s clips Eagle Parent

Moody's Investors Service said it downgraded Eagle Parent Corp.'s (Restaurant Technologies Inc.) corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD, and the company's first-lien credit facilities ratings to B3 from B2.

The first-lien credit facilities include a $100 million senior secured revolving credit facility due in April 2027 and a $885 million senior secured term loan B that matures in April 2029. The outlook was revised to negative from stable.

“The ratings downgrade reflects Restaurant Technologies' weak credit metrics, including elevated debt to EBITDA at 9x and negative free cash flow for the 12 months ending Sept. 30, 2023, that is increasing revolver usage. Moody's expects Restaurant Technologies' credit metrics will continue to be stretched in the next 12-18 months as the company uses all cash flows generated from the business as well as revolver borrowings to fund new customer installations and interest expense,” the agency said in a statement.

Moody’s said it expects Restaurant Technologies will continue delivering negative free cash flow over the next 12-18 months.

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