On Aug. 29, 2006, Standard&Poor's Ratings Services placed its ratings for Dallas-based Brinker International, including the 'BBB' long-term corporate credit rating, on CreditWatch with negative implications. The CreditWatch placement follows Brinker's announcement that its board of directors has authorized a modified Dutch auction tender offer to purchase up to $450 million of common stock. The company also announced it has secured senior financing of up to $400 million from Citigroup Global Markets Inc. and JP Morgan Securities Inc. and plans to use a portion to fund the tender offer. The CreditWatch placement reflects our concern that Brinker is adopting a more aggressive financial policy, which could raise debt leverage. If the company is successful with the tender offer,
