McDonald's Debt Rating Downgraded

S&P says the move reflects the fast-food giant's disappointing results -- and the challenges it faces in revitalizing its worldwide business

On May 8, 2003, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on Oak Brook, Ill.-based McDonald's Corp. (MCD ) to 'A' from 'A+', and lowered its subordinated debt rating to 'A-' from 'A'. The ratings are removed from CreditWatch, where they had been placed Nov. 11, 2002, with negative implications. The short-term corporate credit and commercial paper ratings on McDonald's were affirmed at 'A-1'. Approximately $10.0 billion of debt was outstanding at Dec. 31, 2002. The outlook is negative.

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