Moody’s affirms McDonald’s

Moody's Investors Service said it affirmed McDonald's Corp.'s Baa1 senior unsecured rating and P-2 short term commercial paper rating.

The outlook is stable.

McDonald's recently announced that it will raise its dividend by about 15% and will increase its shareholder return target to about $25 billion from $24 billion, the agency said.

“The ratings affirmation reflects our view that McDonald's credit profile will remain within the range appropriate for its Baa1 senior unsecured and Prime-2 ratings despite the increase in its dividend and the additional debt required to fund its shareholder return target,” Bill Fahy, Moody's senior credit officer, said in a news release.

“Overall, McDonald's is supported by its brand strength, global scale, geographic reach and unique business model that generates strong and steady cash flows which offset certain quantitative credit metrics that are weak for the rating.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.