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On December 4, 2020, Moody's Investors Service upgraded its corporate family rating on SP PF Buyer LLC (dba Pure Fishing) to Caa1 from Caa2, its probability of default rating to Caa1-PD from Caa2-PD and its senior secured first lien term loan rating to Caa1 from Caa2.
The upgrade reflects Pure Fishing's strong third quarter performance which resulted in better operating performance year-to-date and versus Moody's Investors previous expectations, leading to meaningful improvement in financial leverage and free cash flow generation. Still Pure Fishing's rating reflects its relatively moderate scale with revenues of $545 million and its high financial leverage with debt/EBITDA at 7.8x for the LTM period ending September 30, 2020. Pure Fishing has customer concentration with its top customer accounting for around 20% of sales. Governance factors include the Company's aggressive financial policies under private equity ownership, including elevated financial leverage, according to the ratings agency.
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