How Are Portfolio Companies Handling Their Debt?

Below, the latest round of S&P ratings headlines on a few private equity-backed portfolio companies. Listings with asterisks denote inclusion in S&P’s Weakest Links list.

December 16, 2008
Brookstone Inc. Outlook Changed To Negative; ‘B’ Corporate Credit Rating Affirmed. Brookstone is backed by J.W. Childs Associates and Temasek Holdings.

Perkins & Marie Callender’s Inc. Downgraded To ‘CCC’ On Note Payment Concerns. Perkins & Marie Callendar’s Inc. is backed by Castle Harlan. ***

Del Frisco’s Restaurant Group Outlook Changed To Negative;’B’ Corporate Credit Rating Affirmed. Del Frisco’s is backed by Lone Star Funds.

December 15, 2008
Dollar General Corp. ‘B’ Corporate Credit Rating Affirmed; Outlook Revised To Positive. Dollar General is backed by KKR.

Roundy’s Supermarkets Inc. ‘B’ Corporate Credit Rating Affirmed With Negative Outlook. Roundy’s is backed by Willis Stein & Co.

Mark IV Industries Inc. ‘B-‘ Rating On Watch Neg On Worsening Auto Production In Europe. Mark IV Industries is backed by Sun Capital. ***

December 11, 2008
Neiman Marcus Group Inc. Downgraded To ‘B+’ As Credit Metrics Weaken. Neiman Marcus is backed by Leonard Green.

December 4, 2008
El Pollo Loco Inc. Downgraded To ‘CCC+’ On Covenant Compliance Concerns. El Pollo Loco is backed by Freeman Spogli & Co. and Trimaran Capital Partners. **

Sbarro Inc. Downgraded To ‘CCC’ On Covenant Compliance Concerns. Sbarro is backed by MidOcean Partners. **

The entire list of PE-backed Weakest Links is available in the latest issue of Buyouts. It can be viewed with a subscription here:  Portfolio Companies Continue Dominance Of ‘Weakest Links’ list