New York -- Moody's Investors Service, ("Moody's") upgraded SP PF Buyer LLC's (dba Pure Fishing) Corporate Family Rating (CFR) to Caa1 from Caa2, its Probability of Default Rating (PDR) to Caa1-PD from Caa2-PD, and the company's senior secured first lien term loan rating to Caa1 from Caa2. The outlook remains stable.
Today's ratings upgrade reflects Pure Fishing's strong third quarter performance which resulted in better operating performance year-to-date and versus Moody's previous expectations, leading to meaningful improvement in financial leverage and free cash flow generation. The company's debt/EBITDA leverage declined to about 7.8x for the last twelve months (LTM) period ending September 30, 2020, down from 9.3x at fiscal year-end 2019. Pure Fishing's lower debt/EBITDA financial leverage provides cushion within its Caa1 rating to absorb potential future variation around operating results, particularly following a very strong fiscal 2020. In addition, elevated unemployment and a tenuous economic recovery are likely to continue to lead to volatility in discretionary consumer spending.
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