Fitch Affirms YUM!

Fitch Ratings said it affirmed YUM! Brands, Inc.'s long-term issuer default rating of BBB-, senior unsecured notes at BBB- and bank credit facilities at BBB-.

The outlook is stable.

Ratings reflect the company's strong cash flow generation, its geographic diversity and the leading U.S. market share positions, the agency said.

Ratings also consider revenue and operating profit declines for YUM's Kentucky Fried Chicken business in the United States and growing pressure on U.S. consumer discretionary spending, the agency said.

These factors are balanced by strong sales and double-digit profit growth for YUM Restaurants International and China, the agency noted.

For the 12 months ended Sept. 6, adjusted total debt-to-EBITDAR ratio was 3.2x.

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