Moody's could lower Darden

Moody's Investors Service said it placed the ratings of Darden Restaurants, Inc. on review for downgrade, including its Baa3 senior unsecured ratings and Prime-3 short-term commercial paper rating.

The review for downgrade was prompted by Darden's significant revision to earnings guidance and the announcement that it plans to divest its Red Lobster brand through either a tax free spin-off to shareholders or sale to a third party. The company also expects to use proceeds from the divestiture of Red Lobster to reduce debt at Darden.

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