S&P: Il Fornaio B+, loan BB-

Standard & Poor's said it assigned its B+ corporate credit rating to Il Fornaio (America) Corp.

The outlook is stable.

At the same time, the agency said it assigned its BB- issue-level rating to the company's $145 million senior secured bank credit facilities, which consist of a $15 million five-year revolver and a $130 million six-year term loan. The recovery rating is 2.

"The ratings reflect its expectation that Il Fornaio will use excess cash flows for debt reduction, leading to enhanced credit protection measures over the intermediate term," said S&P credit analyst Andy Sookram.

The agency said that it also thinks that EBITDA margins will improve modestly in fiscal 2011 as cost discipline and menu initiatives help mitigate commodity cost inflation.

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