11:12 AM EDT, 06/06/2024 (MT Newswires) -- S&P Global Ratings on Wednesday assigned its "BB+" issue-level rating and "2" recovery rating to the proposed senior secured notes issued by Restaurant Brands International's (QSR.TO) indirect subsidiary 1011778 B.C. Unlimited Liability Co.

The recovery rating indicates the rating agency's expectation for substantial recovery of principal in the event of a payment default.

"We expect this transaction will be leverage neutral because the company will use the proceeds to pay down pari-passu term loan debt," the rating agency said.

All of the existing ratings on the company, including the "BB" issuer credit rating and positive outlook, remain unchanged.

The positive outlook reflects the expectation that the company will successfully execute its expansion and remodel initiatives and increase its revenue and EBITDA such that its S&P Global Ratings-adjusted leverage improves to below 4.5x.

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