S&P cuts Caribbean Restaurants

Standard & Poor's said it lowered the ratings on Caribbean Restaurants LLC to CCC+ from B.

The outlook remains negative.

The agency said that the downgrade reflects the distinct possibility that the company will breach financial covenants of its bank facility at its fiscal year-end.

Moreover, these covenants become increasingly restrictive at the end of July, S&P noted, adding that the downgrade also reflects the company's continued weak performance, which has been driven by a soft Puerto Rican economy coupled with increased labor, utility and commodity costs.

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