NEW YORK — Moody's Investors Service said it has upgraded its debt ratings on Nash Finch Co., citing the wholesaler's "solid credit metrics" through the economic downturn.
The ratings service upgraded Nash Finch's corporate family and probability of default ratings to Ba3 from B1, and its convertible senior subordinated notes to B2 from B3.
"The upgrade acknowledges Nash Finch's track record of maintaining solid credit metrics through the recession and through its recent customer losses," said Moody's analyst Mariko Semetko.
Although it described revenues as "soft" due to customer attrition, Moody's said the rate of decrease has moderated.
Nash Finch has maintained a debt-to-EBITDA ration in the mid-3.0 range and an EBITDA-to-interest expense ration in the high 2.0 range through the recession, Moody's noted.