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Yum's Bonds Cut to Junk at Standard & Poor's on Buyback Plan

  • Credit rating is lowered three levels to BB from BBB
  • Company expects to return $6.2 billion to shareholders
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Yum! Brands Inc. had its bond rating downgraded to junk by Standard & Poor’s Ratings Services, which said the fast-food giant’s planned share buybacks and dividends will probably require more debt.

The rating was lowered three levels to BB, the second notch below investment grade, from BBB, S&P said Thursday in a statement. The rating service gave the debt a "stable" outlook. Moody’s Investors Service rates the bonds Ba1, its highest junk rating.