S&P: Domino's ratings unaffected

Standard & Poor's said Wednesday that Domino's Inc.'s (B+/stable/--) announcement, in which the company stated that it plans to raise $300 million in an initial public offering of shares offered by both the company and existing shareholders, is viewed as a credit positive.

Upon completion of the offering, S&P said it will consider an outlook change to positive from stable if the company uses at least a third of the proceeds to reduce its leverage and continues its stable operating performance.

In June 2003, Domino's completed a recapitalization transaction, which added $400 million of incremental debt. Pro forma for a $100 million debt paydown from the share offering, lease adjusted total debt to EBITDA would decline to about 4.5x, from 5x at Dec. 28, 2003.

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