Moody's rates Darden notes Baa3

Moody's Investors Service said it assigned Darden Restaurants Inc. ratings of Baa3 to its senior unsecured notes due 2012, 2017 and 2034.

The agency also affirmed the Baa3 rating on the issuer's $750 million senior unsecured revolving credit facility due 2012, $150 million 4 7/8% senior unsecured notes due 2010, $150 million 6% senior unsecured notes due 2035, $100 million 7 1/8% senior unsecured notes due 2016, $75 million 7.45% medium-term notes due 2011 and $1.15 billion one-year interim bank credit facility.

The outlook is stable.

Moody's said the ratings reflect Darden's position in the casual restaurant industry, strong margins, steady cash flow generation and cash funding to date for capital spending and dividends.

The ratings also incorporate slipping debt protection metrics because of the acquisition of RARE and the challenges of growing LongHorn into a national brand, the agency said. Credit concerns also operating performance at certain chains and commodity price pressure, Moody's said.

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