S&P affirms Landry's

Standard & Poor's said it affirmed the B corporate credit rating on Landry's Inc., along with the BB- rating on the company's secured bank credit facilities.

The recovery rating is 1, indicating 90% to 100% expected recovery in a default.

The agency also said it affirmed the B rating on the company's 11 5/8% second-lien notes and maintained the 4 recovery rating, which indicates 30% to 50% expected recovery.

The outlook is stable.

The ratings reflect an assessment that credit measures will improve modestly in the near term, as the company benefits from cost savings initiatives, including headcount reduction and menu improvements, S&P said.

The ratings are constrained by the company's acquisitive growth strategy that could delay any improvement in operating performance or credit ratios, the agency said.

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