S&P rates Wendy's loans BB-

Standard & Poor's said it assigned a BB- issue-level rating and a 2 recovery rating to Wendy's International Inc.'s proposed $1.3 billion bank credit facilities.

The agency said it also affirmed all other ratings, including the B+ corporate credit rating. The outlook remains stable.

"The ratings on Dublin, Ohio-based fast food company The Wendy's Co. reflect our view that credit metrics will remain reflective of a highly leveraged financial risk profile because of what we see as the likelihood for the company to pursue sizeable shareholder initiatives after the completion of its remodeling program, elevated debt levels and thin cash flow protection measures," said S&P credit analyst Andy Sookram in a news release.

The stable outlook reflects S&P's opinion that credit measures should improve modestly in fiscal 2012, the agency said.

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