The ratings on McDonald's Corp. are based on the company's strong position in the quick-service sector of the restaurant industry. This should continue to be its major business strength. The company's worldwide access to capital and excellent liquidity remain its major financial strengths. However, recent performance problems and an aggressive desire to enhance shareholder value via stock repurchases have used up much of the company's flexibility within the rating. The 2001 performance was below expectations, and earnings are still being challenged by lackluster growth in the U.S. and problems internationally. The company's domestic competitors have made inroads in terms of actual or perceived quality, service, and cleanliness; and there has been a decided slowdown in the company's growth rate, in
