S&P upgrades Einstein Noah

Standard & Poor's said it raised the corporate credit rating on Einstein Noah Restaurant Group Inc. to B+ from B.

The outlook is stable.

The upgrade reflects the company's moderately improved credit metrics resulting from lower debt balances, S&P said.

The ratings also consider its vulnerable business risk profile, the agency said.

In October 2012, Einstein planned to issue a $265 million credit facility to refinance its existing debt and pay a one-time special dividend to its shareholders. But, the proposed transaction did not close and the company instead amended its existing Dec. 20, 2010 credit agreement, S&P said.

The amendment increased the company's term loan to $100 million from $75 million and its revolver to $75 million from $50 million. The company used proceeds from the incremental term loan, along with about $40 million borrowings under the revolver, to pay about $68 million in dividends to its shareholders, the agency said.

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