On Dec. 21, 2007, Standard&Poor's Ratings Services 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 company (this rating was not placed on CreditWatch). The CreditWatch action follows the Orlando, Fla.-based 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) as a result of weak fundamentals in the casual-dining sector and rising commodity costs. These factors will likely affect Darden for several more quarters at a time when it is integrating its Oct. 1, 2007, acquisition of
