S&P cuts HoA, notes

Standard & Poor's said it lowered its ratings on HoA Restaurants Group LLC, including the corporate credit rating, to B- from B. The outlook is stable.

The agency said it also lowered the issue-level ratings on the company's senior secured notes to B- from B. The recovery rating on this debt remains unchanged at 4.

S&P said the company's ratings are connected to parent Hooters Restaurants.

"Today's rating actions are a result of our lowering our profit outlook on Hooters in light of higher food costs over the near term," said S&P credit analyst Charles Pinson-Rose in a news release.

"The previous rating incorporated profit growth as a result of cost saving initiatives; Hooters has been successful in this regard, and has improved labor and other costs. However, higher food costs have counteracted these efforts and we believe profitability will be near current levels in the near term."

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