Fitch rates YUM! notes BBB-

Fitch Ratings said it assigned a BBB- rating to YUM! Brands, Inc.'s $250 million 4.25% senior unsecured notes due Sept. 15, 2015 and $250 million 5.3% senior unsecured notes due Sept. 15, 2019.

The BBB- long-term issuer default rating, senior unsecured notes and bank credit facilities are unchanged.

The outlook is stable.

The proceeds will be used to repay borrowings under the company's $375 million variable-rate term loan due July 11, 2011 and to make a $150 million to $200 million contribution to its defined benefit plan before the end of the current fiscal year.

The agency said YUM!'s ratings reflect its solid cash flow generation along with the scale and brand equity provided by more than 36,000 units across multiple restaurant brands and its geographic diversity.

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

For the last 12 months ended June 13, rent-adjusted leverage was 3.3 times.

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