S&P: Real Mex view negative

Standard & Poor's said it revised the outlook on Real Mex Restaurants Inc. to negative from stable and affirmed the B- corporate credit rating.

The outlook revision reflects the significant decline in operating performance for the first part of 2007, according to the agency, that could strain the company's already weak liquidity position if the slide continues.

The ratings reflect the company's relatively small size in the highly competitive casual-dining restaurant industry, its regional concentration and narrow product offerings and its highly leveraged capital structure that results in weak cash flow protection, S&P said.

The company's debt-to-EBITDA ratio grew to 7.3 times at the end of the second quarter from 6.4 times at the end of fiscal year 2006.

Moody's: Autocam view negative

Moody's Investors Service said it affirmed Autocam Corp.'s B3 corporate family rating and changed its outlook to negative from stable.

The rating action considers the company's continuing weak performance despite the benefits of recent operating and financial restructuring initiatives, according to Moody's.

The negative outlook reflects the company's weak financial performance and the potential for the rating to be downgraded in the absence of a near-term improvement in financial metrics, the agency said.

The rating could be downgraded, Moody's said, if persistent negative free cash flow or covenant violations under the bank facility were to result in any erosion of the company's liquidity profile.

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