S&P lowers Perkins

Standard & Poor's said it lowered its corporate credit rating on Perkins & Marie Callender's Inc.'s to CCC from B-.

The outlook is negative.

"The downgrade reflects its growing concern that Perkins' liquidity may not be adequate to meet the interest payments on its $190 million unsecured 10% senior notes and $132 million 14% senior secured notes when they come due in April and May 2009, respectively," said S&P credit analyst Jackie E. Oberoi.

In addition, Perkins' poor operating performance has led to weakening credit metrics, with leverage that reached more than 11x as of the 12 months ended Oct. 5, and interest coverage of less than 1x, the agency said.

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