S&P ups Dunkin' to positive

Standard & Poor's said that it revised the outlook on Dunkin' Brands Inc. to positive from stable, following the company's filing of a registration statement with the Securities and Exchange Commission for an IPO of $400 million.

The outlook is positive.

S&P affirmed the B corporate credit rating and the rating on Dunkin' Brands' senior secured credit facility, following the company's announcement that it intends to borrow $100 million of additional term loans, bringing the total amount of the term loans to about $1.5 billion.

The company indicated that it will use the proceeds from the additional debt to redeem an equal amount of the outstanding 9 5/8% senior notes.

The rating action reflects the expectation for an improvement in Dunkin' Brands' financial risk profile as a result of debt reduction with proceeds from the IPO and a continuation of debt repayment with excess cash flows, the agency said.

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