U.S. restaurant operator Darden is acquiring Yard House USA Inc. for $585 million. We expect the transaction to be financed with additional debt and will weaken credit ratios, but we also believe the company will continue to grow sales and profits, reflecting new unit growth. We are affirming all ratings on the company, including the 'BBB' corporate credit rating. The stable outlook reflects our expectation that the company will improve profits and restore credit metrics to levels we have previously viewed appropriate for the current rating. On July 13, 2012, Standard&Poor's Ratings Services affirmed all ratings on Orlando-based Darden Restaurants Inc., including the 'BBB' corporate credit rating. The outlook at stable. Darden has entered into an agreement to
