TRIS rates Mudman at ‘BBB-

TRIS Rating has assigned a company rating on Mudman at “BBB-” with a stable outlook.
 The rating reflects the company’s position in the restaurant chain and quick service restaurant market segment, as well as its recognised brands and improving balance sheet. The rating takes into consideration the growth prospects of the restaurant chain and QSR segment. These strengths are offset by Mudman’s earnings growth challenges amid intense competition, a sluggish economy that limits consumer spending, and looming capital expenditures.
The stable outlook is based on the expectation that Mudman will maintain its market position and keep improving operating performance. The credit rating could be revised upward if the operating performance and ability to generate cash flow improve substantially while maintaining sound balance sheet, TRIS said. The rating downside case would be triggered by the weaker-than-expected operating performance for a prolonged period of time or aggressive debt-funded investments.