Kroll hits TGI Friday’s ABS with new downgrades

tgi-fridays UK restaurant for website
By Jennifer Kang
02 Sep 2020

Kroll Bond Rating Agency has downgraded all outstanding ratings on TGI Friday’s securitizations as the franchise scrambles to adjust to new consumer behaviour toward casual dining. The spate of downgrades in the whole business space is still raising concerns over whether current ratings reflect the true risk in the deals, as some issuers waive management fees during the months of pandemic.

TGI Friday’s 2017-1 is securitized by existing and future franchise agreements and related fees, as well as intellectual property.

The company tapped the securitization market just once, in February 2017. The $375m transaction was initially given a triple-B rating by Kroll and a triple-B minus rating by S&P Ratings. ...

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