S&P ups O'Charley's to stable

Standard & Poor's said it revised its outlook on O'Charley's Inc. to stable from negative and affirmed its ratings, including the BB $125 million revolving credit facility and BB- corporate credit ratings.

The outlook revision is based on the company's stable operating performance, good credit measures for the rating category and the expectation that O'Charley's will fund its growth largely through internally generated funds, S&P said.

The ratings reflect the company's relatively small market position in the highly competitive casual dining sector of the restaurant industry, the increased business risk of operating multiple concepts and a highly leveraged capital structure, the agency noted.

These factors are partly offset by favorable growth prospects for casual dining and good credit measures for the rating category, S&P added.

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