Sbarro Inc, a pizza chain with nearly 1,000 restaurants in 30 countries, said it notified lenders of a default under a credit agreement and hired Rothschild Inc to help it explore strategic options. The news prompted Standard & Poor's on Thursday to lower Sbarro's credit rating one notch to "CC," a low "junk" grade, from "CCC-minus," with a negative outlook. S&P analyst Mariola Borysiak called the Melville, New York-based company's capital structure "unsustainable."
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