S&P upgrades OSI Restaurant, rate loan BB

Standard & Poor's said it raised OSI Restaurant Partners LLC's corporate credit rating to B+ from B.

The agency also assigned a B+ corporate credit rating to Bloomin' Brands Inc., the parent company of OSI Restaurant Partners.

The outlook is positive for both companies.

S&P also assigned a BB rating and a 1 recovery rating to the proposed $225 million revolving credit facility due 2017 and $1.0 billion term loan due 2019.

The proceeds will be used to refinance borrowings outstanding under its existing $150 million working capital revolving credit facility due 2013, $100 million capital expenditure revolving credit facility due 2013 and $1 billion term loan due 2014.

Upon the completion of the refinancing, the agency said it will withdraw the ratings on the existing bank facilities.

The ratings reflect the companies' fair business risk profile and an expectation that the financial risk profile will remain aggressive in the next 12 months, S&P said.

The agency also said it believes debt leverage will improve to the mid- to low-4x range because of continued sales and cash flow growth.

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