Moody's drops El Pollo

Moody's Investors Service said it downgraded El Pollo Loco, Inc.'s corporate family rating and probability of default rating to Caa1 from B3, its senior credit facilities rating to B1 from Ba3, and 11.75% senior unsecured notes due 2013 to Caa2 from Caa1.

The outlook is negative.

Concurrently, the company's speculative-grade liquidity rating is affirmed at SGL-4, the agency said.

The downgrades reflect El Pollo's weaker than expected recent financial results and continuously deteriorating same store sales, as well as Moody's expectation that its operating result will remain under pressure given the weak macro-economic environment.

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