S&P assigns Jack in the Box loan BB-

Standard & Poor's said it assigned its BB- rating to Jack in the Box Inc.'s $475 million term loan due 2012 and $150 million revolver due 2011.

The rating is equal to the BB- corporate credit rating, which was affirmed, S&P said.

The agency added that the BB- bank loan ratings and the 2 recovery ratings indicate its expectation of a substantial recovery of principal in the event of payment default.

The outlook is negative.

S&P added that the ratings on Jack in the Box reflect leverage that is high for the rating category and is estimated to increase to about 4.8x with this debt issuance.

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