...- U.S.-based foodservice distributor Chefs' Warehouse Inc. has improved its S&P Global Ratings-adjusted leverage toward the mid-4x area through EBITDA growth. We forecast the company's leverage will improve toward 4.0x in fiscal year 2024 as it continues to expand its organic revenue and successfully integrates its recent acquisitions. - Additionally, the company recently announced a net debt to adjusted EBITDA target range of 2.5x-3.0x, which it plans to achieve by year-end 2025. - Therefore, we raised our issuer credit rating on Chefs' Warehouse to 'B+' from 'B' and our issue-level rating on its senior secured term loan to '##-' from 'B+'. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 80%) recovery in the event of a default. - The stable outlook reflects our expectation that a modest expansion in the company's EBITDA margin over the next 12 months, coupled with steady capital expenditure (capex), will support positive free operating cash...
