Fitch: New Burger King entity loan BB, notes B

Fitch Ratings said it assigned issuer and expected issue-level ratings related to Burger King Worldwide, Inc.’s proposed acquisition of Tim Hortons, Inc.

The debt is being issued by 1011778 B.C. Unlimited Liability Co., a new legal entity created to effect the transaction.

The ratings assigned to the new entity include a long-term issuer default rating of B, senior secured revolver rating of BB with a recovery rating of RR1, senior secured term loan B rating of BB with recovery rating of RR1 and senior secured second-lien notes rating of B with recovery rating of RR4.

Burger King Worldwide, Inc. has a long-term issuer default rating of B+.

Co-issuers Burger King Capital Holdings, LLC and Burger King Capital Finance, Inc. have long-term issuer default ratings of B+, along with a B- rating to its 11% senior discount notes due 2019 with recovery rating of RR6.

Burger King Holdings, Inc. has a long-term issuer default rating of B+ and long-term issuer default rating of B+.

Burger King Corp. has a long-term issuer default rating of B+, along with BB+ ratings with recovery rating of RR1 on its secured revolver due 2015, secured term loan A due 2017 and secured term loan B due 2019. Its 9 7/8% senior unsecured notes due 2018 have a BB- rating with recovery rating of RR3.

Fitch also said it maintained the Rating Watch negative on Burger King and its subsidiaries.

The ratings reflect views regarding the de-leveraging and the free cash flow generating ability of the new combined company, the agency said.

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