S&P cuts Wendy's

Standard & Poor's said it lowered its corporate credit and senior unsecured debt ratings on Wendy's International Inc. to BB- from BB+.

All ratings remain on CreditWatch with negative implications, where they were placed on April 26, the agency said, noting that the rating actions follow the company's announcement that the special committee of its board of directors has decided to explore a possible sale of the company.

S&P said it views this action as a more aggressive financial policy that could result in a highly leveraged capital structure and reduced cash flow protection, adding that ratings remain on CreditWatch because the company could undertake a transaction that significantly increases leverage and weakens cash flow measures.

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