The Chefs' Warehouse Inc. Outlook Revised To Stable From Positive; 'B' Ratings Affirmed

The Chefs' Warehouse Inc.'s profits for the remainder of 2016 will be depressed due primarily to its inability to manage the effects of protein deflation at a recently acquired business. We believe this could partly reflect difficulties managing its high growth, particularly through acquisition. We are revising our outlook on the foodservice distribution company to stable from positive, and affirming our 'B' corporate credit rating and 'B' senior secured first-lien bank debt ratings. The recovery rating on the bank debt remains '3', indicating that creditors could expect meaningful recovery (at the high end of the 50%-70% range) in the event of a payment default. The stable outlook incorporates our expectation that profitability will stabilize over the next 12 months. We

...+ The Chefs' Warehouse Inc.'s profits for the remainder of 2016 will be depressed due primarily to its inability to manage the effects of protein deflation at a recently acquired business. + We believe this could partly reflect difficulties managing its high growth, particularly through acquisition. + We are revising our outlook on the foodservice distribution company to stable from positive, and affirming our 'B' corporate credit rating and 'B' senior secured first-lien bank debt ratings. The recovery rating on the bank debt remains '3', indicating that creditors could expect meaningful recovery (at the high end of the 50%-70% range) in the event of a payment default. + The stable outlook incorporates our expectation that profitability will stabilize over the next 12 months. We forecast an adjusted EBITDA margin in the 6%-6.5% range and debt to EBITDA in the low-6x area over the next year. CHICAGO (S&P Global Ratings) Aug. 5, 2016--S&P Global Ratings today revised its outlook on Ridgefield,...

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