Moody’s changes Red Lobster to negative

Moody's Investors Service said it affirmed Red Lobster Management LLC's B3 corporate family rating, B3-PD probability of default rating and B3 senior secured term loan rating.

The outlook was changed to negative from stable.

"The change in outlook reflects the company's persistently high leverage and modest interest coverage due in part to continuing weak operating trends," Moody's senior credit officer Bill Fahy said in a news release.

"The affirmation of the B3 CFR considers Moody's expectation that Red Lobster's liquidity will remain strong with the company remaining free cash flow positive and maintaining material unrestricted cash balances."

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