Fitch rates Yum! notes BBB

Fitch Ratings said it assigned a BBB rating to YUM! Brands, Inc.'s proposed $350 million of 10-year senior unsecured notes.

The outlook is stable.

The new notes are being issued under YUM's May 1, 1998 indenture and rank equally with the company's existing senior unsecured indebtedness, Fitch said.

The agency said it recognizes that YUM's debt balance could temporarily increase as a result of this issuance, but Fitch said it expects the company to repay a portion of its near-term maturities.

The ratings reflect its sizable and growing operating cash flow along with its significant geographic diversity, the agency said.

The ratings also consider the scale provided by nearly 38,000 system-wide units, which mainly consists of the Kentucky Fried Chicken, Pizza Hut and Taco Bell brands, Fitch said.

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