S&P affirms junk debt rating for CKE Restaurants

S&P affirms junk debt rating on CKE Restaurants, upgrades outlook to stable from negative

• On 3:32 pm EDT, Wednesday September 30, 2009

NEW YORK (AP) -- Standard & Poor's on Wednesday affirmed a junk rating on the corporate debt of CKE Restaurants Inc., which owns and operates the Carl's Jr. and Hardee's fast food chains.

S&P also revised its outlook to stable from negative.

S&P has a "BB-" rating on CKE's debt, which is three notches into junk territory, or non-investment grade.

But the rating agency improved its outlook because it believes the restaurant owner and operator can "maintain profitability and credit metrics around current levels despite likely same-store sales declines."

Same-store sales is measured at stores open for at least a year. It is a key metric of a retailer's health since it is not skewed by new store openings.

Shares of Carpinteria, Calif.-based CKE fell 4 cents to $10.50 in afternoon trading.