Moody's: new Darden notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Darden Restaurants, Inc.'s proposed $350 million senior unsecured note offering due 2021. The company's Baa2 senior unsecured ratings were affirmed.

Moody's expects the net proceeds from the proposed note offering to be used for general corporate purposes, which may include repayment of outstanding debt.

The outlook is stable.

Moody's said the assignment of a Baa2 rating to Darden's proposed senior notes and the affirmation of the company's Baa2 senior unsecured rating reflects Moody's view that the proposed offering, and the incremental increase in total debt, will result in only a modest decrease in EBITA coverage of interest and retained cash flow to total debt - to about 5.2 times and 26% on a pro forma basis from 5.5 times and 29.4% for the latest 12-month period ended May 29.

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