Moody's rates Brinker notes

Moody's Investors Service said it assigned a Baa2 rating to Brinker International Inc.'s $300 million unsecured notes due 2014 and affirmed the company's existing Baa2 ratings, including the Baa2 rating for the senior unsecured convertible debentures due 2021.

Proceeds will be used for general corporate purposes including share repurchases. Pro forma for the new debt offering, Brinker's adjusted debt to EBITDAR will increase to about 2.7x on a trailing-12-month basis but is expected to drop by fiscal year-end due to earnings growth and the inclusion of a 53rd week.

Moody's said Brinker's ratings reflect its solid position within the casual dining segment, its domestic geographic diversity, the brand strength of Chili's which represent the largest percent of Brinker's units (65%) and operating income (76%).

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