S&P: CKE Restaurants unchanged

Standard & Poor's said that CKE Restaurants Inc.'s (BB-/stable) announcement of an expansion of its share repurchase authorization and increase in its term loan has no current effect on the ratings or outlook on the company.

The agency said that the company's board of directors approved a $50 million increase in share repurchases, boosting potential buybacks to $78 million.

The company also said that it will use the accordion feature of its term loan, increasing outstandings by $50 million to a total of $170 million and use the new proceeds to reduce borrowings on its revolving credit facility, the agency noted.

Although S&P said it does not expect these actions to have an important effect on credit ratios, it will monitor the magnitude and timing of buybacks to make sure that credit metrics remain in line with the current BB- rating.

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