Corporate Credit Rating: AA/Negative/A-1+ McDonald's Corp.'s announcement that its first quarter 2001 earnings would be impacted by consumer concerns regarding the European beef supply has no effect on the company's credit rating or outlook. Although anxiety over the safety of European beef has persisted longer than expected, McDonald's believes that it can still attain good growth for the remaining nine months of the year. Some of this optimism is based on new operating and financial strategies, as well as the company's expectation that confidence in the European beef supply will be restored. Standard&Poor's ratings on McDonald's assume that the negative impact on the business will not continue and that the company will not accelerate its share repurchase program.
