S&P ups Domino's loan recovery to 2

Standard & Poor's said it raised to 2 from 4 its recovery rating on the B+ bank loan rating of Domino's Inc. (B+/positive/--). The 2 recovery rating indicates the expectation of a substantial (80%-100%) recovery of principal in the event of a payment default.

All other ratings on the company were affirmed, including the B- subordinated debt rating.

S&P said the ratings on Domino's Inc. reflect the risks associated with the company's participation in the highly competitive pizza industry, a narrow product focus, a significant debt burden and weak cash flow protection measures.

These factors are partially mitigated by the company's established brand, simple and cost-efficient operating system and improved profitability, the agency said.

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