Four Ratings On Two FOCUS Brands Funding LLC Series Placed On CreditWatch Negative Due To COVID-19 Stress

OVERVIEW The coronavirus pandemic has caused widespread stress on the retail and restaurant sectors. The stress on FOCUS Brands Funding LLC is particularly severe due to FOCUS Brands Inc.'s (Focus') substantial presence in malls and other locations that are closed or have experienced steep traffic declines. We expect the FOCUS Brands Funding LLC transaction to experience a substantial near-term cash flow decline caused by store closures and weak traffic. We also believe Focus' overall sales recovery profile may be more prolonged than that of other restaurant brands due to its outsized exposure to malls and other locations consumers may be slow to return to once stringent social distancing precautions are lifted. We are placing our ratings on four notes issued

...OVERVIEW + The coronavirus pandemic has caused widespread stress on the retail and restaurant sectors. The stress on FOCUS Brands Funding LLC is particularly severe due to FOCUS Brands Inc.'s (Focus') substantial presence in malls and other locations that are closed or have experienced steep traffic declines. + We expect the FOCUS Brands Funding LLC transaction to experience a substantial near-term cash flow decline caused by store closures and weak traffic. We also believe Focus' overall sales recovery profile may be more prolonged than that of other restaurant brands due to its outsized exposure to malls and other locations consumers may be slow to return to once stringent social distancing precautions are lifted. + We are placing our ratings on four notes issued by FOCUS Brands Funding LLC on CreditWatch with negative implications. The CreditWatch placement reflects our expectation of significant and potentially prolonged declines in store revenue for domestic and international Focus...

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