S&P raises issue-level rating on DineEquity's 9.5% senior notes due 2018 to B- from CCC+, revises recovery rating to 6 from 5

NEW YORK , September 21, 2012 (press release) – Standard & Poor's Ratings Services said today that it raised the issue-level rating on Glendale, Calif.-based DineEquity Inc.'s 9.5% senior notes due 2018 to 'B-' from 'CCC+'. At the same time, we revised our recovery rating to '5' from '6'. The '5' recovery rating indicates that lenders should receive a modest (10%-30%) recovery of principal in the event of a default.

The change in our recovery analysis reflects our revised expectation of the recovery prospects because of the company's repayment of principal under the term loan. (For the complete recovery analysis, see the recovery report on DineEquity, to be published as soon as possible following this report on RatingsDirect.)

Our 'B' corporate credit rating on DineEquity and 'BB-' issue-level rating on its senior secured credit facility due 2017 remain unchanged. The outlook remains stable. (For the complete corporate credit rating rationale, see the summary analysis on DineEquity, to be published as soon as possible on RatingsDirect.)

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