Moody’s assigns Yum! notes B1

Moody’s Investors Service said it assigned a B1 rating to Yum! Brands Inc.’s proposed $500 million of senior notes.

Proceeds will be used for general corporate purposes.

The agency also affirmed the company’s Ba2 rating and changed the outlook to negative from stable.

"The negative outlook reflects the risk that there may be a sustained weakening in Yum's credit metrics as they are increasing debt levels at a time when the company is facing significant uncertainty surrounding the potential length and severity of restaurant closures and the ultimate impact that these closures will have on Yum's revenues, earnings and liquidity," said Bill Fahy, a Moody's senior credit officer, in a press release.

"The outlook also takes into account the negative impact on consumers’ ability and willingness to spend on eating out until the crisis materially subsides," Fahy added.

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