S&P drops Yum!

Standard & Poor's said it lowered the corporate credit and senior unsecured ratings on Yum! Brands Inc. to BBB- from BBB.

The outlook is stable.

The agency said that the downgrade reflects Yum's more aggressive policy and its expectation that credit metrics will decline because of the partially debt-financed share repurchases.

S&P noted that it had been expecting the company's leverage to decline over the next few years, based on its assumption of increasing profitability and a slight increase in debt levels.

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