Moody’s lowers Arcos Dorados, debt to B1

Moody's Investors Service said it downgraded Arcos Dorados Holdings Inc.’s corporate family rating and senior unsecured ratings to B1 from Ba3 and revised the outlook to negative from stable.

Moody’s said the downgrade was prompted by Arcos Dorados' deteriorating credit profile, mainly as a result of operating challenges and very weak economic environments in the countries in which it operates, particularly Brazil, where it generates nearly 60% of its EBITDA.

In addition, the downgrade also incorporates the negative impacts on metrics coming from currency devaluation and inflation, among other factors.

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