Moody's: O'Charley's outlook stable

Moody's Investors Service said it revised O'Charley's, Inc. outlook to stable from negative, while affirming its B2 corporate family and probability-of-default ratings and speculative grade liquidity rating of SGL-3.

The rating on its $125 million senior subordinated notes due 2013 was raised to B3 from Caa1, primarily due to the capital structure change as a result of the company's recent amended credit agreement to reduce commitment amount to $45 million from $83 million, among other changes.

"The revision of rating outlook reflects our expectation that the company's credit metrics will likely remain consistent with the B2 rating in the next 12 to 18 months despite continued pressure on revenues and earnings," Moody's analyst John Zhao said in a statement.

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