The Chefs' Warehouse Inc. Outlook Revised To Positive On Return To Growth; Ratings Affirmed

U.S.-based The Chefs' Warehouse Inc. suffered deteriorating operating performance during the height of the pandemic, but the company returned to growth over the past three quarters, and profitability has improved. We estimate S&P Global Ratings-adjusted leverage was 6.6x at year-end 2021. We affirmed our 'B-' issuer credit rating on Chefs' and revised the outlook to positive. We raised our issue-level rating on the $171.2 million senior secured term loan to 'B+' from 'B', reflecting the revised recovery rating of '1' (90%-100% recovery; rounded estimate: 95%) from '2'. The positive outlook reflects the potential for a higher rating over the next 12 months if pandemic risk continues to decline, Chefs' manages the high-cost environment, and we expect the company will sustain

...March 4, 2022 - U.S.-based The Chefs' Warehouse Inc. suffered deteriorating operating performance during the height of the pandemic, but the company returned to growth over the past three quarters, and profitability has improved. We estimate S&P Global Ratings-adjusted leverage was 6.6x at year-end 2021. - We affirmed our 'B-' issuer credit rating on Chefs' and revised the outlook to positive. - We raised our issue-level rating on the $171.2 million senior secured term loan to 'B+' from 'B', reflecting the revised recovery rating of '1' (90%-100% recovery; rounded estimate: 95%) from '2'. - The positive outlook reflects the potential for a higher rating over the next 12 months if pandemic risk continues to decline, Chefs' manages the high-cost environment, and we expect the company will sustain adjusted leverage below 7x. CHICAGO (S&P Global Ratings) March 4, 2022--S&P Global Ratings today took the rating actions listed above. The rating actions reflect our expectation that Chefs' recovery...

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