Fitch affirms YUM!

Fitch Ratings said it affirmed YUM! Brands, Inc.'s long-term issuer default rating at BBB-, senior unsecured notes at BBB- and bank credit facilities at BBB-.

The outlook is stable.

YUM's ratings reflect its solid cash flow generation, the scale and brand equity, and its geographic diversity, the agency said.

For the 12 months ended March 21, rent-adjusted total debt-to-EBITDAR ratio was 3.4 times.

Ratings also consider the global macroeconomic slowdown, pressure on consumer discretionary spending and the resulting negative impact on restaurant sales, the agency said.

These concerns are partially alleviated by the fact that China development is self-funding, that global food cost inflation is moderating and by the expectation that operating income will continue to benefit from cost reductions, Fitch said.

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