S&P ups Caribbean Restaurants, rates loan B-

Standard & Poor's said it raised its corporate credit rating on Caribbean Restaurants LLC to B- from CCC. The outlook is stable.

At the same time, the agency said it assigned a preliminary B- issue-level rating to the company's proposed new senior secured facility, which consists a $20 million revolving credit facility due 2016 and a $190 million term loan due 2017. The preliminary recovery rating is 3, indicating an expectation of meaningful recovery a payment default scenario.

The agency said the CCC+ rating on the company's remaining existing $149 million senior secured notes is unchanged

"The ratings on Caribbean Restaurants reflect our belief that liquidity will improve after the completion of the refinancing, with an extended maturity profile and adequate covenant headroom," said S&P credit analyst Helena Song in a news release.

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