S&P: Fertitta Morton loan BB-

Standard & Poor's said it assigned a B corporate credit rating to Fertitta Morton's Restaurants Inc., along with a BB- rating and 1 recovery rating to its $215 million senior secured bank credit facility, which consists of a $15 million revolving credit facility due 2016 and a $200 million term loan due 2017.

The outlook is stable.

The proceeds will be used to fund the acquisition of Morton's Restaurant Group, refinance existing debt at Claim Jumper and pay certain fees and expenses.

The ratings reflect what is considered Fertitta Morton's weak business risk profile, which incorporates its presence in the highly competitive restaurant industry and exposure to commodity cost swings, S&P said.

The company's brand name recognition and diversity partly offset these weaknesses, the agency said.

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