CHI-CHI'S <CHIC> DEBT DOWNGRADED BY S/P
Standard and Poor's Corp said it cut to
B from B-plus 50 mln dlrs of convertible subordinated
debentures of Chi-Chi's Inc.
    The company's senior debt rating is BB-minus.
    S and P said the action reflected poor performance from
Chi-Chi's chain of 200 Mexican food restaurants. The agency
also said that a planned repurchase of three mln common shares
will result in reduced equity of 23 mln dlrs and a rise in debt
leverage to 67 pct from about 60 pct in fiscal 1987.
    Chi-Chi's posted a 5.7 mln dlr loss for the nine months
ended January 31, S and P noted.
 Reuter
