Research Update: Brinker International Inc. Upgraded To 'BB-' On Improving Performance And Deleveraging, Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Brinker International Inc. Upgraded To 'BB-' On Improving Performance And Deleveraging, Outlook Stable

Research Update: Brinker International Inc. Upgraded To 'BB-' On Improving Performance And Deleveraging, Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Brinker International Inc. Upgraded To 'BB-' On Improving Performance And Deleveraging, Outlook Stable
Published May 18, 2021
8 pages (3250 words) — Published May 18, 2021
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We anticipate restaurant company Brinker International Inc.'s accelerating sales momentum and improving margins will continue to support its efforts to reduce its leverage. We now forecast the company's adjusted leverage will improve below 4x this calendar year and EBITDA interest coverage will exceed 4x. Therefore, we raised our issuer credit rating on Brinker to 'BB-' from 'B+' and our issue-level rating on its senior unsecured notes due 2023 to 'B' from 'B-'. At the same time, we revised our recovery rating on the company's senior notes due 2024 to '3' from '2'. Our 'BB-' issue-level rating on the notes is unchanged. The stable outlook reflects our expectation that Brinker's credit metrics will improve this year as it restores the health

  
Brief Excerpt:

...- We anticipate restaurant company Brinker International Inc.'s accelerating sales momentum and improving margins will continue to support its efforts to reduce its leverage. We now forecast the company's adjusted leverage will improve below 4x this calendar year and EBITDA interest coverage will exceed 4x. - Therefore, we raised our issuer credit rating on Brinker to '##-' from 'B+' and our issue-level rating on its senior unsecured notes due 2023 to 'B' from 'B-'. - At the same time, we revised our recovery rating on the company's senior notes due 2024 to '3' from '2'. Our '##-' issue-level rating on the notes is unchanged. - The stable outlook reflects our expectation that Brinker's credit metrics will improve this year as it restores the health of its balance sheet by expanding EBITDA and reducing its debt....

  
Report Type:

Research Update

Ticker
EAT
Issuer
GICS
Restaurants (25301040)
Sector
Global Issuers, Structured Finance
Country
Region
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Brinker International Inc. Upgraded To 'BB-' On Improving Performance And Deleveraging, Outlook Stable" May 18, 2021. Alacra Store. May 03, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Brinker-International-Inc-Upgraded-To-BB-On-Improving-Performance-And-Deleveraging-Outlook-Stable-2649767>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Brinker International Inc. Upgraded To 'BB-' On Improving Performance And Deleveraging, Outlook Stable May 18, 2021. New York, NY: Alacra Store. Retrieved May 03, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Brinker-International-Inc-Upgraded-To-BB-On-Improving-Performance-And-Deleveraging-Outlook-Stable-2649767>
  
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