S&P puts CKE on watch

Standard & Poor's said it placed its ratings, including the BB- corporate credit rating, on CKE Restaurants Inc. on CreditWatch with negative implications following the company's announcement that it has entered into a definitive merger agreement under which it will be acquired by Thomas H. Lee Partners for approximately $928 million, including the assumption of approximately $309 million of net debt.

The agency believes this transaction could weaken CKE's credit profile due to the potential for the transaction to be funded with additional debt.

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