S&P rates Yum! notes BBB-

Standard & Poor's said it assigned a BBB- senior unsecured debt rating to Yum! Brands Inc.'s proposed RMB 350 million of notes maturing in 2014.

These notes will rank equally with the company's existing and future unsecured indebtedness.

The proceeds will be used for general corporate purposes, including restaurant growth initiatives.

The positive outlook considers that the ratings could be upgraded if Yum! maintains its solid operating momentum along with modest improvement in leverage ratios, S&P said, and if it adheres to a prudent financial policy.

The ratings reflect the company's diverse operations and its highly franchised business model, which mitigate difficulties from the macroenvironment and volatile commodity costs, the agency said.

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