...April 6, 2020 - Restaurant operators are experiencing sharp demand declines as the coronavirus pandemic spreads throughout the country. - We expect Taco Bell franchisee Tacala LLC's operating performance to weaken significantly while the pandemic impairs its operations, with double-digit revenue declines leading to a leverage spike in fiscal 2020 followed by a recovery in 2021. - We are revising our outlook to negative from stable and affirming all our ratings, including our 'B-' issuer credit rating. - The negative outlook reflects the risk that we could lower the rating if a prolonged disruption causes us to view Tacala's capital structure as unsustainable. This could include recessionary trends persisting and resulting in lower traffic over a longer-than-anticipated period. NEW YORK (S&P Global Ratings) April 6, 2020--S&P Global Ratings today took the rating actions listed above. We expect significant same-store sales declines as consumers prepare more meals at home due to social distancing...
