Fitch lowers McDonald’s view to negative

Fitch Ratings said it affirmed the long-term issuer default ratings of McDonald’s Corp. at A, along with its F1 short-term rating and the A ratings on its bank credit facilities and senior secured debt.

The company’s outlook was revised to negative from stable.

The outlook revision was due to persistently weak global same-store sales, declining store-level profitability and increased leverage, Fitch said.

Consolidated company-operated restaurant margin contracted 160 basis points to 15.9% in 2014, continuing a multi-year decline that began in 2010, the agency said.

The company’s total debt-to-EBITDA also was 1.5x as of Dec. 31, up from 1.4x in 2013, Fitch said.

The agency also said it believes McDonald’s sales will gradually benefit from increasing real disposable income in the United States, particularly for low- to middle-income consumers.

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