Fitch: McDonald’s notes BBB+

Fitch Ratings said it assigned a BBB+ rating to McDonald's Corp.’s multi-tranche debt issuances.

The outlook is negative.

The $6 billion issuance includes $750 million three-year notes, $1 billion five-year senior unsecured notes, $1.75 billion 10-year senior unsecured notes, $750 million 20-year senior unsecured notes and $1.75 billion 30-year fixed-rate senior unsecured notes.

The notes, which rank pari passu with existing debt, are being issued under McDonald's U.S. medium-term notes shelf registration dated Sept. 28, 2012, Fitch said.

The proceeds will be used for general corporate purposes, inclusive of share repurchases.

The company has a long-term issuer default rating of BBB+, bank credit facilities rating of BBB+, senior unsecured debt rating of BBB+, short-term issuer default rating of F2 and commercial-paper rating of F2.

McDonald's is demonstrating a growing willingness to utilize its balance sheet to increase shareholder returns, the agency said.

The company recently announced plans to optimize its capital structure and increase cash returned to shareholders via dividends and share repurchases to about $30 billion during the three-year period ending 2016, Fitch said.

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