S&P assigns OSI Restaurant B+, loan BB-, notes B-

Standard & Poor's said it assigned its B+ corporate credit rating to OSI Restaurant Partners Inc.

The outlook is negative.

At the same time, the agency said it assigned a BB- rating to the company's planned $1.33 billion bank facility, which is expected to consist of a $1.08 billion term loan B due 2014 and a $150 million revolver and a $100 million prefunded revolver due 2013.

This rating and the 1 recovery rating indicate S&P's Poor's high expectation for a full recovery of principal in the event of payment default.

The agency said it also assigned the company's planned $700 million senior unsecured notes due 2015 a B- rating, two notches lower than the corporate credit rating.

According to S&P, the ratings on OSI reflect the company's participation in the competitive restaurant industry and a highly leveraged capital structure, pro forma for the transaction, more than 7x, that results in thin cash flow protection measures while these factors are offset by the company's solid position in the casual dining industry and its history of strong cash flow generation.

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