We expect the spread of the coronavirus to sharply reduce restaurant traffic and customer spending due to collapsing consumer confidence and unprecedented precautionary measures implemented by state and local governments, including temporary closures. We believe Brinker International Inc.'s operating results will be weaker than we previously expected, causing its credit protection metrics to deteriorate and potentially result in the need to amend its current maximum leverage covenant. Therefore, we are downgrading Brinker to 'BB-' from 'BB+' and are placing all of our ratings on the company on CreditWatch with negative implications. The negative CreditWatch placement indicates that we could view the company's liquidity less favorably if it is unable to secure an amendment to its revolving credit agreement with adequate
