Denny's bank loan rated higher by S&P on company's repayment

Nation's Restaurant News, Dec 10, 2007

SPARTANBURG, S.C. -- Denny's Corp. received from Standard & Poor's Ratings Services an improved credit rating on its $350 million bank facility because of the restaurant company's repayment throughout the year.

Denny's bank debt now holds a non-investment-grade rating of BB, two notches above the company's corporate credit rating and up from the previous bank loan rating of BB-, according to a Nov. 28 S&P report.

S&P credit analyst Diane Shand said the improved rating "reflects a meaningful repayment of the credit facility." Denny's, which operates 1,539 restaurants, has repaid about $45.2 million of debt for the year through Sept. 26, on proceeds from sales of real estate assets and corporate restaurants to franchisees.