...- Bowlero Corp.'s S&P Global Ratings-adjusted leverage rose to 8.6x as of the most recent quarter ended Dec. 31, 2023, compared with 7.6x as of the previous quarter ended Oct. 1, 2023. - The company experienced weaker sales growth of 5.7% over the last 12 months and 510 basis points (bps) of margin compression in the first half of fiscal 2024 from the prior period, which pushed leverage higher, though all of the increase was driven by an accounting reversal related to the transfer of land and real estate assets. - Because we do not believe the accounting reversal has an impact on the credit risk of the company, we affirmed our 'B' issuer credit rating on Bowlero. - We also affirmed our 'B' issue-level rating and '3' recovery rating on the company's first-lien credit facility comprising a $235 million cash flow revolver and $1.15 billion term loan. - The stable outlook reflects our belief that Bowlero will maintain S&P Global Ratings-adjusted leverage (including leases, preferred shares,...
