NEW YORK (Standard&Poor's) Dec. 21, 2007--Standard&Poor's Ratings Services said today it placed its long-term ratings, including the 'BBB+' long-term corporate credit rating, on Darden Restaurants Inc. (Darden) on CreditWatch with negative implications. We also affirmed the 'A-2' short-term rating on the Orlando, Fla.-based company (this rating was not placed on CreditWatch). The CreditWatch action follows the casual-dining chain's Dec. 18, 2007, announcement of weak second-quarter results, which caused credit metrics to decline. "Darden's core business deteriorated in its fiscal second quarter (ended Nov. 25, 2007)," said Standard&Poor's credit analyst Diane Shand, "as a result of weak fundamentals in the casual-dining sector and rising commodity costs." These factors will likely affect Darden for several more
