S&P rates Burger King loans BB-

Standard & Poor's said the BB- corporate credit rating on Burger King Corp., a subsidiary of Burger King Holdings Inc., will remain on CreditWatch with negative implications.

The agency assigned BB- issue and 1 recovery ratings to the company's $1.9 billion senior secured credit facility consisting of a $1.75 billion term loan and a $150 million revolving credit facility.

The rating was placed on CreditWatch on Sept. 2 after an affiliate of 3G Capital Inc. announced that it had entered a definitive agreement to purchase the company for $24.00 per share.

"If the proposed acquisition by 3G is completed, we expect to lower the corporate credit rating on Burger King by two notches to B with a stable outlook," S&P analyst Charles Pinson-Rose said in a statement.

"The rating on Burger King reflects our belief that it will be difficult for the company to grow comparable-store sales in the U.S., because of both its participation in the highly competitive quick-service restaurant industry and the likelihood that domestic unemployment will remained elevated in the near term," Pinson-Rose said.

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