S&P lowers O'Charley's

Standard & Poor's said it lowered its corporate credit rating on O'Charley's Inc. to B- from B. The outlook is negative.

At the same time, S&P said it lowered its issue-level rating on the company's subordinated debt to CCC+ from B-. The recovery rating remains 5, indicating S&P's expectation for modest recovery in the event of a payment default, the agency said.

"The downgrade reflects our expectation that commodity cost inflation and the prolonged weakness in the U.S. economy will pressure EBITDA performance in the next several quarters and contribute to thinner financial covenant cushion," said S&P credit analyst Andy Sookram in a news release.

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