El Pollo Loco, hit hard by double-digit profit losses over the last three years, is in danger of defaulting on an upcoming loan payment, according to Standard & Poor’s.
The Costa Mesa-based chain “has a high probability of being unable to cover an $11 million principal payment in May and a $14 million interest payment in June,” according to a report by Bloomberg News.
As a result, S&P reduced the chain’s corporate credit rating two notches to CC, or junk status.