Moody’s Boosts C&S Outlook

NEW YORK — Moody’s Investors Service here said on Wednesday that it has revised its outlook for C&S Group Enterprises to “positive” from “stable” and affirmed its rating on the wholesaler’s senior secured notes.

The positive rating outlook reflects C&S's improved credit metrics due to lower funded debt levels and Moody's expectation for further improvement in credit metrics driven by sales volumes increases and the EBITDA contribution from the company's growing Efficient Storage, Selection and Shipping ("ES3") operations.

C&S is a financing subsidiary for C&S Wholesale Grocers, the Keene, N.H.-based wholesaler.

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"C&S has been successful in increasing its top line despite operating in a challenging business and industry environment as new contracts have resulted in increased sales volumes, which in turn have led to increased EBITDA and improved credit metrics," said Mickey Chadha, senior analyst at Moody’s, in a statement.

Moody’s affirmed its rating of Ba3 — “speculative with substantial credit risk” — on Moody’s corporate family and probability of default and its B1 rating on $270 million in senior secured notes.