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OSI, Lazydays Make List For Default Risk

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By MICHAEL SASSO

msasso@tampatrib.com

Published: March 11, 2009

TAMPA - The parent company of Outback Steakhouse and two other local companies landed on an unenviable list of companies most at-risk of defaulting on their debt.

On Tuesday, Moody's Investors Service released a new report called Bottom Rung that lists companies with speculative-grade debt ratings.

Among the 283 companies on the list, which does not include financial companies, are OSI Restaurant Partners and trucking company Quality Distribution, both in Tampa, and Lazydays RV Center in Seffner.

Joe Kadow, an executive vice president at OSI, declined comment. OSI operates restaurant chains Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse and Wine Bar, Roy's, Cheeseburger in Paradise and Blue Coral Seafood & Spirits.

A Quality Distribution official did not return a phone message Tuesday, and Lazydays did not immediately respond to an e-mail request.

Moody's assigned OSI a rating of "Ca" on the probability of default. Companies with that rating are considered "highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest."

OSI has been hurt by the recession and its large debt burden.

Lazydays also received a "Ca" rating, and Quality Distribution received a rating of "Caa1," which is a slightly better. The highest rating in Moody's probability of default rating is Aaa, according to its Web site.

Reporter Michael Sasso can be reached at (813) 259-7865.

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