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Bulletin: Yum! Brands Inc. Ratings Unaffected By Tentative Acquisition Of Majority Shares In Chinese Restaurant Chain
Standard & Poors, May 2011
Abstract
NEW YORK (Standard & Poor's) May 16, 2011--Standard & Poor's Ratings Services said today that its ratings on YUM! Brands Inc. (BBB-/Stable/--) are unaffected by the company's announcement that it plans to acquire an additional 66% of the outstanding shares of Little Sheep Group Ltd., bringing its total ownership to about 93%. Little Sheep is a full-service, hot pot restaurant chain primarily in China. The offer is preconditioned on regulatory approval. YUM! expects to consummate the transaction through a cash offer of Hong Kong dollars (HK$) 6.50 per share, which we estimate will cost about US$570 million. The company plans to finance the acquisition through available financial resources. We think if it uses debt, this will not materially affect credit...
Companies mentioned in this report are: Yum! Brands Inc.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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