Moody's gives Burger King loan Ba2, view down to negative

Moody's Investors Service said it assigned a Ba2 rating to Burger King Corp.'s proposed $350 million senior secured term loan B add-on facility.

Moody's also said it affirmed the company's Ba2 corporate family rating as well as the Ba2 rating assigned to Burger King's $250 million senior secured term loan A, $750 million senior secured term loan B and $150 million senior secured revolving credit facility.

In addition, Moody's added it changed the outlook to negative from stable.

The change in outlook to negative from stable reflects the company's weaker credit metrics due in large part to higher debt levels associated with its proposed dividend initiatives, Moody's said.

Affirmation of the Ba2 corporate family rating and assignment of the Ba2 senior secured term loan B add-on reflect the company's significant brand equity, geographic diversity, improving operating performance and good liquidity, the agency said, noting relatively weak credit profile and significant competitive pressures as well.

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