S&P affirms OSI

Standard & Poor's said it affirmed its ratings on OSI Restaurant Partners Inc., including its B+ corporate credit rating, and removed them from CreditWatch, where they were placed on May 9, with developing implications.

The outlook is negative.

The agency said that the CreditWatch listing reflected its concern that a higher priced bid would be financed with additional debt and the removal from CreditWatch follows the company's announcement that its stockholders adopted an amended merger agreement whereby shares will be converted into $41.15 in cash, rather than the originally expected $40.00 per share.

S&P added that 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 of more than 7x that results in thin cash flow protection measures.

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