Moody's changes outlook on Wagamama's ratings to positive from stable; B2 CFR affirmed
Moody's Investors Service changed the outlook on the ratings of Mabel Mezzco Limited (Wagamama) to positive from stable. Moody's has also affirmed the company's B2 corporate family rating (CFR), B2-PD probability of default rating (PDR) and the B2 rating of GBP150 million Senior Secured Notes due 2020 issued by Wagamama Finance plc.
"We have changed our outlook on Wagamama to positive to reflect the company's improved leverage resulting from strong top line growth and improved EBITDA generation over the last 24 months. We also expect it to keep reducing its leverage in the next 12 to 18 months," said Emmanuel Savoye, an AVP at Moody's.
"Despite the UK's increasingly competitive casual dining market, Wagamama has outperformed its peers by delivering double digit percentage like-for-like sales growth in the last two financial years and in last four quarters. It also continues to expand organically through the opening of new restaurants in the UK and internationally."
