...- We assume Elvis UK Holdco Ltd., parent of Restaurant Brands Iberia (RBI), will see negative free operating cash flow (FOCF) after lease payments this year due to a more ambitious expansion plan than we initially anticipated, particularly following the upsizing of its term loan B add-on by 50 million. - Nevertheless, and despite economic headwinds, RBI's growth should remain solid and mitigate persistent high cost pressure in 2023, and we assume the group's EBITDA base will grow further, alongside a gradual improvement in margins from last year's levels. - In our view, any risk related to the debt add-on is mitigated by the little execution risk associated with the rapid store expansion. Also, we think the group should be able to preserve adequate liquidity thanks to the absence of near-term maturities and some flexibility around the expansionary capex. - We therefore affirmed our 'B' long-term issuer credit rating on Elvis UK Holdco and our 'B' issue rating, with a '3' recovery rating,...
