Fitch rates McDonald's notes A

Fitch Ratings said it assigned an A rating to McDonald's Corp.'s proposed $1.5 billion senior unsecured note issuance. The company is rated at long-term issuer default A, bank credit facility A, senior unsecured debt A, subordinated debt A- and short-term issuer default F1.

The outlook is stable.

Proceeds will be used for general corporate purposes. The notes are being issued under the company's existing indenture dated Oct. 15, 1996, which contains limitations on liens but does not contain financial covenants or any other material covenants.

Fitch said the ratings reflect the company's substantial and growing cash flow resulting from same-store sales growth and improving profitability, its leading global market position and its well-established franchisee network.

The ratings also consider increased share buybacks, the competitive quick-service restaurant market and shifting consumer trends on nutrition, according to the agency.

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