S&P lowers Uno

Standard & Poor's said it lowered its ratings on Uno Restaurant Holdings Corp. to CCC from CCC+.

The outlook remains negative.

S&P said it believes that challenging conditions facing the casual-dining restaurant industry and the company's inconsistent performance make a covenant breach a distinct possibility.

The downgrade is based on deterioration of cushion over financial covenants on its senior secured revolving credit facility as of the first quarter ended Dec. 30, the agency said.

Ratings are based on the company's very weak cash flow protection measures and tenuous liquidity, S&P said.

For the 12 months ended Dec. 30, leverage was 10 times.

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