S&P ups Bloomin’ Brands, loan

Standard & Poor's said it raised its corporate credit rating on Bloomin’ Brands Inc. and its operating subsidiary OSI Restaurant Partners LLC to BB from BB-.

The outlook is stable.

At the same time, the agency raised the issue-level rating on the senior secured credit facility to BBB- from BB+. The recovery rating is 1, indicating expectations for very high (90%-100%) in the event of default.

"The rating action reflects our expectation that operating performance trends will remain good in the next 12 months, driven by positive same-store sales and unit expansion. We also believe that brand revitalization initiatives, productivity improvements, and continued menu innovation will help Bloomin’ Brands to continue gaining some market share and modestly improve margins," S&P credit analyst Helena Song said in a news release.

"We expect debt leverage will be about 3.1x at the end of fiscal 2014 and slightly improve to about 2.9x in 2015, primarily driven by continued EBITDA growth."

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