Moody's lifts Yum from junk

Moody's Investors Service said it upgraded Yum! Brands' long-term senior unsecured ratings, including the $1.2 billion senior unsecured guaranteed bank credit facility to Baa2 from Baa3 and the senior unsecured notes to Baa3 from Ba1.

Moody's said the upgrade reflects the company's lower debt balances, its growing cash flow that is more than sufficient to fund all capital spending needs, its balanced growth strategy that is expected to drive continued improvement in earnings and cash flow, a reasonably stable industry outlook, and a healthy franchise system.

In Moody's view Yum!'s management team remains committed to a conservative financial policy going forward.

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