trending Market Intelligence /marketintelligence/en/news-insights/trending/QGIRlKE6H95o76rsL1aT7w2 content esgSubNav
In This List

S&P upgrades Restaurant Brands on improving performance, credit metrics

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


S&P upgrades Restaurant Brands on improving performance, credit metrics

S&P Global Ratings on Sept. 6 upgraded the ratings of Restaurant Brands International Inc., citing the Toronto-based company's improving operating performance and credit metrics.

Ratings raised Restaurant Brands' issuer credit rating and the issue-level ratings on its first-lien debt to BB from BB-, and its second-lien notes to B+ from B. The agency also assigned a BB issue-level rating to the company's proposed $750 million term loan due in 2024 and the proposed $500 million first lien senior secured notes due in 2028.

Ratings kept Restaurant Brands' 3 and 6 recovery ratings unchanged, while the outlook on the company remains stable to reflect the agency's expectation for generally positive same-store sales growth at all three brands as well as stable operating profitability over the next 12 months.

Restaurant Brands, which operates Tim Hortons, Burger King and Popeyes chains, will continue to improve in the next 12 months as it boosts its franchise base and successfully executes operational initiatives across its three brands, according to the rating agency.

It added that it could lower the ratings if the company's debt to EBITDA is forecast to be sustained above 5.5x, which could happen if the company pursues a more aggressive financial policy.

Meanwhile, it could upgrade the ratings if Restaurant Brands sustains adjusted leverage around 4x over the next 12 months, and if the company's financial policy supports credit metrics at a higher rating.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.