Standard & Poor's Ratings Services has completed a review of the recovery and issue-level ratings assigned to Lake Forest, Calif.-based Sagittarius Restaurants LLC's senior secured credit facility. We had previously revised the recovery rating and raised the issue-level rating by one notch, following meaningful debt reduction progress on the term loan. We simulate a default occurring in 2014 due to a steep decline in revenue and income from intense competition within the casual dining industry, coupled with commodity cost pressures. Sagittarius Restaurants' capital structure consists of a $199 million senior secured credit facility due 2015 (comprising a $39 million revolving credit facility and a $160 million term loan), unrated $110 million 13% OpCo notes due 2016, and unrated $40 million...
Companies mentioned in this report are: Sagittarius Restaurants LLC
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