S&P: O'Charley's outlook stable

Standard & Poor's said it revised its outlook on O'Charley's Inc. to stable from negative and affirmed its ratings, including the B+ corporate credit rating.

The outlook revision follows a stabilization of operating performance and improvement in credit metrics during the first quarter, the agency said. S&P expects that O'Charley's operating performance will remain somewhat stable, despite likely sales declines, and that it can maintain credit ratios appropriate for the rating category.

The ratings on O'Charley's reflect its participation in the highly competitive casual dining restaurant, which has been vulnerable to declines in consumer spending, and its aggressively leveraged capital structure, S&P said.

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