Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News
Sponsored By
Moody's Boosts Sprouts Ratings
NEW YORK — Moody's Investors Service here said Friday it has upgraded its debt ratings on Sprouts Farmers Market following the company’s recent initial public offering.
August 16, 2013
2 Min Read
NEW YORK — Moody's Investors Service here said Friday it has upgraded its debt ratings on Sprouts Farmers Market following the company’s recent initial public offering.
It upgraded the corporate family rating for Sprouts to B1 and its probability of default rating to B1-PD from B2 and B2-PD, respectively, with a stable rating outlook. Moody's also said it upgraded the rating of the company's $360 million senior secured term loan and $60 million senior secured revolving credit facility to B1 from B2; and it assigned Sprouts a speculative grade liquidity rating of SGL-2.
Follow @SN_News for updates throughout the day.
According to Moody's, "The significant reduction in Sprouts' total debt through proceeds from its IPO will result in substantial improvement in credit metrics. In addition, we expect Sprouts' good operating performance to continue and further improve profitability and credit metrics in the next 12 to 18 months."
Moody's said the stable rating outlook is based on expectations that same-store sales will remain positive, liquidity will remain good and there will be no material change in industry conditions, plus the expectation of no further material debt-financed shareholder distributions or acquisitions in the next 12 to 18 months.
Read more: Sprouts Shares Double During IPO
You May Also Like
