Moody's cuts Wendy's to junk

Moody's Investors Service said it lowered the senior unsecured ratings of Wendy's International, Inc. to Ba2 from Baa3 and assigned a Ba2 corporate family rating.

The outlook is negative.

The ratings downgrade was prompted by Moody's view that Wendy's credit risk profile, in the context of its intention to divest Tim Horton's, continues to deteriorate, due in part to the adoption by its management of a more aggressive financial and business risk profile driven in part by various shareholder initiatives, the continued poor operating performance of the core Wendy's business, the challenge of turning the core Wendy's business around in a reasonable period of time and the loss of both geographic and product diversification.

Ratings downgraded include the senior unsecured notes to Ba2 from Baa3, senior unsecured shelf to prospective Ba2 from prospective Baa3, subordinated shelf to prospective Ba3 from prospective Ba1, preferred stock shelf to prospective B1 from prospective Ba2 and commercial paper to Not Prime.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.