S&P could lift Landry's from distressed

Standard & Poor's said Landry's Restaurant Inc.'s CCC corporate credit rating, CCC+ bank loan rating and CC senior unsecured debt rating remain on CreditWatch with developing implications, where they were placed on July 25.

Also on CreditWatch are Golden Nugget Inc.'s CCC corporate credit rating, its CCC- $165 million second-lien bank loan and its CCC+ $210 million first-lien bank loan, $120 million delayed-draw bank loan and $50 million revolver.

Landry's recently announced an agreement with noteholders to boost the interest rate on its senior unsecured notes due 2014 to 9½% from 7½% with a call option at 18 months and noteholder option for redemption at 18 months, according to the agency.

Once the final agreement is executed, S&P said it could raise the corporate credit rating on Landry's and its subsidiary, Golden Nugget, by at least three notches to B from CCC.

Factors that could constrain a rating above B are a reevaluation of the company's future financial policy, financing plans and acquisition appetite, the agency said.

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