S&P: El Pollo Loco outlook stable

Standard & Poor's said it revised its outlook on El Pollo Loco Inc. to stable from negative and affirmed the company's ratings, including the B- corporate credit rating, after Freeman Spogli & Co. made a $45 million equity investment in El Pollo Loco's parent.

The agency said this significantly enhances the company's liquidity and financial flexibility and will allow El Pollo Loco to accelerate new store growth, among other things. The company's liquidity was previously constrained because it posted collateral for a bond against damages ruled against the company in a trademark lawsuit, S&P explained, but now it has drastically enhanced resources to fund growth capital expenditures than it did before the judgment was rendered.

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