Moody's ups Center Cut view to stable

Moody's Investors Service said it revised Center Cut Hospitality, Inc.'s outlook to stable from negative and affirmed its Caa1 corporate family rating, probability of default rating and B3 senior secured credit facility. Moody's also said it upgraded the speculative grade liquidity rating to SGL-3 from SGL-4.

The outlook revision reflects the recently decelerated negative same-store sales trends at both of its concepts, Del Frisco's and Sullivan's high-end steakhouse, Moody's said.

The latest operating results indicated moderation in the top-line decline with the first quarter of 2010, down about 2.1% as compared to the double-digit decline last year, the agency said.

Moody's said it expects further stabilization in the near term as business spending continues to recover modestly.

The ratings also consider the company's small scale, significant EBITDA concentration and still-fragile consumer sentiment, the agency said.

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