S/P MAY DOWNGRADE CHI-CHI'S <CHIC> CONVERTIBLES
Standard and Poor's Corp said it may
downgrade Chi-Chi's Inc's 50 mln dlrs of B-plus convertible
subordinated debentures due 2009.
    S and P cited continued poor operating performance of
Chi-Chi's 200 Mexican food restaurants and the company's
planned repurchase of up to three mln of its common shares.
    Chi-Chi's posted a third-quarter loss of 10 mln dlrs,
including a 20 mln dlr pretax loss from the disposal of 21
company-owned restaurants as part of a restructuring plan, the
rating agency noted. Profitability has fared poorly for three
years, mostly because of intense competition, S and P added.
 Reuter
