TEXT-S&P raises DineEquity senior note rating to 'B-'
Sept 21 - 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.) RELATED CRITERIA AND RESEARCH -- Methodology: Short-Term/Long-Term Ratings Linkage Criteria For Corporate And Sovereign Issuers, May 15, 2012 -- Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 -- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009 -- Business Risk/Financial Risk Matrix Expanded, May 27, 2009 -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 RATINGS LIST DineEquity Inc. Corporate Credit Rating B/Stable/-- Upgraded; Recovery Rating Revised To From DineEquity Inc. Senior 9.5% nts due 2018 B- CCC+ Recovery Rating 5 6