March 19, 2008   CARIBBEAN RESTAURANTS: S&P Cuts Rtg. to CCC+; Holds Neg. Outlook Standard & Poor's Ratings Services has lowered its ratings on Caribbean Restaurants LLC to 'CCC+' from 'B'.  The outlook remains negative. "The downgrade reflects the distinct possibility that the company will breach financial covenants of its bank facility at its fiscal year-end," said S&P's credit analyst Jackie E. Oberoi.  The company's fiscal year ends on April 30, 2008. Moreover, these covenants become increasingly restrictive at the end of July 2008.  "The downgrade also reflects the company's continued weak performance, which has been driven by a soft Puerto Rican economy coupled with increased labor, utility, and commodity costs," added Ms. Oberoi. Based in San Juan, Puerto Rico, Caribbean Restaurants, LLC, through an exclusive territorial development agreement with Burger King Corporation, is the sole franchisee of Burger King restaurants in Puerto Rico with approximately 170 units as of fiscal year-end April 30, 2007.
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