U.S.-based restaurant operator and franchisor Brinker International Inc.'s credit protection metrics have weakened leaving limited headroom at the current rating. We expect industry conditions will remain challenging and a higher operating unit base could result in higher volatility to Brinker's operating performance. We are revising the outlook to negative from stable and affirming all of our ratings, including the 'BB+' issuer credit rating. The negative outlook reflects our view that there is limited cushion at the current rating for any operating underperformance given Brinker's elevated leverage. Brinker's financial policy and strategic decisions to operate a higher mix of leased, corporate-owned restaurants have contributed to weaker credit metrics and increased operating risk in our view. Adjusted debt to EBITDA has increased
