S&P assigns Yum! notes B+

S&P said it assigned its B+ issue-level rating and 6 recovery rating to Yum! Brands Inc.'s proposed new $1.05 billion of senior unsecured notes due 2031. The 6 recovery rating indicates an expectation for negligible recovery to lenders (0%-10%; rounded estimate: 0%) in the event of default.

Yum! will use the proceeds and cash on hand to redeem the outstanding $1.05 billion of 5% senior unsecured notes due 2024 issued by Yum's subsidiaries (KFC Holding Co., Pizza Hut Holdings, LLC and Taco Bell of America, LLC).

“We see improved recovery prospects for the remaining subsidiary senior notes because the proposed parent notes are structurally subordinated. Therefore, we revised the recovery rating on the subsidiary senior notes to 3 from 4, indicating our belief that lenders would realize meaningful recovery (50%-70%; rounded estimate: 65%) in the event of a default,” S&P said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.