TEXT-S&P raises DineEquity senior note rating to 'B-'

Fri Sep 21, 2012 11:14am EDT

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
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