Moody's lifts Floor & Décor view to positive

Moody's Investors Service said it affirmed the ratings of Floor & Decor Outlets of America, Inc., including its B2 corporate family rating, B2-PD probability of default rating and B2 rating on its senior secured term loan B.

The agency also said it changed the outlook to positive from stable.

The outlook revision reflects the company's material debt reduction, which has led to a significant improvement in credit metrics, Moody's said.

As a result, pro forma leverage improved to about 4.6x from about 5.7x for the period ending December 2016, the agency said.

The ratings reflect the company's competitive position in hard surface flooring and positive operating trends, as well as its modest scale, aggressive growth strategy versus historic levels and limited geographic diversity, Moody's said.

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