S&P lowers Arby's

Standard & Poor's said it lowered its ratings on Arby's Restaurant Group Inc. by two notches, including the corporate credit rating, which it lowered to B- from B+.

At the same time, the agency said it placed the ratings on Creditwatch with developing implications.

S&P said it also placed the ratings of Arby's parent company, Wendy's/Arby's Group Inc. and its subsidiary Wendy's International Inc., including their B+ corporate credit ratings, on Creditwatch with negative implications.

"These actions follow the company's report of fourth-quarter and year-end operating results," said S&P credit analyst Charles Pinson-Rose.

The agency said that the company will look to combine its revolver and term loan borrowings of both Wendy's and Arby's into a single credit agreement to ensure covenant compliance. Currently, Wendy's has a $200 million revolving credit facility, while Arby's credit agreement consists of a $100 million revolving credit facility and a term loan with an outstanding balance of $495 million as of Sept. 28.

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