U.S.-based CHG PPC Intermediate II LLC's (CHG) operating results for the past two quarters exceeded our expectations due to the resilience of quick-service restaurants (QSRs) and the strength of the company's retail operations. We previously expected a substantial deterioration in profitability from foodservice closures due to the pandemic. We are upgrading the company to 'B' from 'B-' based on our expectations that QSRs will continue to operate even if the virus persists and that the retail segment will remain strong from increased food-at-home consumption. Commensurately, we are raising our issue-level rating on the first-lien senior secured credit facilities to 'B' from 'B-'. The recovery rating remains '3'. The stable outlook reflects our expectation that the company will maintain leverage of
