Fat Brands downgraded to Market Perform from Outperform at Noble Capital

Noble Capital analyst Joe Gomes downgraded Fat Brands (FAT) to Market Perform from Outperform after the company disclosed on November 17 that the company received notices of acceleration from UMB with respect to Securitization Notes. Fat Brands does not have the capital to repay all amounts due under the Notes, according to the analyst, who believes the range of potential outcomes includes a variety of end games, up to and including bankruptcy. While the firm believes that a bankruptcy “would be the worst possible outcome for all parties,” it is unclear at this point how the event will play out and the firm is moving to the sidelines given the uncertainty in the debt restructuring.