S&P cuts Uno Restaurant

Standard & Poor's said it lowered its ratings on Uno Restaurant Holdings Corp. to CC from CCC.

The outlook remains negative.

The agency said that the downgrade is based on Uno's announcement that it will not make its interest payment due Aug. 15.

While the company has sufficient liquidity to make its interest payment, management intends to avail itself of the 30-day grace period and is looking into a restructuring of the company's capital structure, S&P noted, adding that the ratings on Uno are based on the expectation that it will not make its Aug. 15 interest payment.

In addition, S&P said it believes that challenging conditions facing the casual-dining restaurant industry and the company's inconsistent performance make a covenant breach a distinct possibility, EBITDA cushion over financial covenants was very thin as of the third quarter ended June 29.

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