S&P lowers Jack in the Box

Standard & Poor's said it lowered its ratings on Jack in the Box Inc., including the corporate credit rating to BB- from BB.

The agency said that the downgrade reflects leverage that remains high for the rating category, estimated at 4.4x as of Oct. 1 and expected to increase further, to about 5x, if its Dutch tender offer for stock is fully successful.

The outlook is negative.

The ratings on Jack in the Box reflect the company's participation in the intensely competitive quick-service segment of the restaurant industry and its leveraged capital structure, the agency said, noting that these weaknesses are partially offset by the company's good regional presence and generally good operating performance.

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