Latest news with #creditrating

Arcos Dorados Achieves Full Investment Grade With S&P's Initial Rating of 'BBB-'

Yahoo

10 hours ago

Business
Yahoo

Arcos Dorados Achieves Full Investment Grade With S&P's Initial Rating of 'BBB-'

MONTEVIDEO, Uruguay, July 31, 2025--(BUSINESS WIRE)--Arcos Dorados Holdings Inc. (NYSE: ARCO) ("Arcos Dorados" or the "Company") announced that S&P Global Ratings (S&P) assigned an investment grade long-term issuer credit rating of 'BBB-' with a Stable Outlook for the Company. This marks the second investment grade rating received by Arcos Dorados, following Fitch Ratings' upgrade to 'BBB-' in January 2025, thereby achieving full investment grade status. In its report, the agency highlighted Arcos Dorados' leading position in the quick service restaurant (QSR) industry in Latin America, its exclusive rights to the McDonald's brand through its Master Franchise Agreement (MFA), and its consistent track record of maintaining a conservative financial profile. These strengths support stable credit metrics, with S&P-adjusted debt to EBITDA of approximately 2.0x and S&P-adjusted Funds from Operations to Debt near 35%. S&P also emphasized the strategic benefits of the recently renewed MFA with McDonald's, valid through the end of 2044, with an additional 20-year renewal option. This agreement grants Arcos Dorados exclusive access to one of the world's most recognized brands across 20 countries in the region, providing a significant competitive advantage in terms of brand strength, supply chain integration, and access to global operational know-how. S&P further noted Arcos Dorados' sound liquidity position, broad geographic footprint, and capacity to withstand a potential Brazilian sovereign stress scenario. The Company's prudent financial risk management, lack of near-term debt maturities, and access to committed credit facilities further strengthen its credit profile according to the rating agency. S&P and Fitch both highlighted Arcos Dorados' operating performance and prudent financial policy as key drivers of long-term credit quality. Fitch pointed to the Company's continued strong operating performance, good liquidity and comfortable debt maturity profile to support its upgrade in January 2025. Achieving full investment grade status reinforces Arcos Dorados' commitment to maintaining a solid financial position and enhances its standing in global capital markets, reflecting strong confidence in the Company's financial discipline and long-term strategic execution. Follow us on: LinkedIn, Instagram, X/Twitter, YouTube About Arcos Dorados Arcos Dorados is the world's largest independent McDonald's franchisee, operating in Latin America and the Caribbean. It has the exclusive right to own, operate and grant franchises of McDonald's restaurants in 20 Latin American and Caribbean countries and territories with more than 2,400 restaurants, operated or franchised by the Company or by its sub-franchisees, that together employ more than 100,000 people (as of 03/31/2025). The Company is also committed to the development of the communities in which it operates, to providing young people their first formal job opportunities and to utilize its Recipe for the Future to achieve a positive environmental impact. Arcos Dorados is listed for trading on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website: View source version on Contacts Investor Relations Contact Dan SchleinigerVP of Investor RelationsArcos Media Contact David GrinbergVP of Corporate CommunicationsArcos Sign in to access your portfolio

Fitch affirms Saudi Arabia's A+ credit rating with stable outlook

Zawya

4 days ago

Business
Zawya

Fitch affirms Saudi Arabia's A+ credit rating with stable outlook

RIYADH — Fitch Ratings has affirmed Saudi Arabia's long-term foreign currency issuer default rating at A+ with a stable outlook, highlighting the Kingdom's strong fiscal position and continued reform momentum. In its latest report, the international rating agency said Saudi Arabia's credit rating reflects the robustness of its financial fundamentals. It noted that key indicators —such as the sovereign net foreign asset position and the debt-to-GDP ratio— are significantly stronger than the averages for countries in the "A" and even "AA" rating categories. Fitch emphasized that the Kingdom holds substantial financial reserves in the form of public sector deposits and other assets, supporting its macroeconomic stability. Looking ahead, the agency projected that Saudi Arabia's sovereign net foreign assets will remain a cornerstone of its credit strength, reaching 35.3% of GDP by 2027. This figure stands well above the average for countries rated 'A,' which is just 3.1% of GDP. Fitch also pointed to the ongoing fiscal reforms undertaken by the Saudi government, aimed at improving budget flexibility and reducing dependence on oil revenues. The agency said these reforms, along with a sustained rise in non-oil revenues, continue to reinforce the Kingdom's credit profile. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (

The CMA approves an incentive measure to support credit-rated debt instruments

Zawya

4 days ago

Business
Zawya

The CMA approves an incentive measure to support credit-rated debt instruments

The Capital Market Authority's (CMA's) Board approved an incentive measure for public offerings of debt instruments, granting priority in the review of public offering applications to issuers or issuances that have obtained a credit rating from a CMA-licensed credit rating agency. This measure will remain in effect until the end of 2026. This initiative comes as part of the CMA's commitment to enhancing the efficiency and transparency of the debt instruments market and supporting its role as a primary source of business financing and economic growth. It also aims to encourage issuers of publicly offered debt instruments to obtain credit ratings to broaden investor participation and strengthen the market's depth and efficiency. This measure forms part of the CMA's strategy to deepen the Saudi capital market and enhance its attractiveness and transparency, in line with the objectives of Saudi Vision 2030 to diversify funding sources and promote financial sustainability. A credit rating is not merely an indicator of the issuer's creditworthiness; rather, it serves as an effective tool enabling investors to make well-informed investment decisions. Through this measure, the CMA aims to build a more mature and stable debt instruments market with a diversified investor base and strengthened confidence among all participants. It also seeks to expand the investor base by enabling them to assess the risks of investing in publicly offered debt instruments, in addition to accelerating the review procedures by the CMA. This measure is expected to enhance companies' access to the debt instruments market to meet their financing needs, stimulate the number of issuances, and increase the attractiveness of offerings to investors. A credit rating facilitates the financial advisor's ability to market the offering, particularly to institutional and qualified investors who rely on such ratings in their investment decisions. A credit rating is defined as a forward-looking opinion on credit risk, which reflects the likelihood of issuers defaulting on their financial obligations in the short or long term, as well as the potential severity of financial losses for creditors in the event of default. Issuers use credit ratings to signal their creditworthiness and attract investors, while investors rely on them to support their credit analysis of issuers and debt instruments.

Finland's Credit Rating Cut at Fitch as Debt Pile Keeps Growing

Bloomberg

6 days ago

Business
Bloomberg

Finland's Credit Rating Cut at Fitch as Debt Pile Keeps Growing

Finland suffered its first downgrade in almost a decade after Fitch Ratings cut the Nordic country's credit rating over its failure to rein in ballooning debt. Fitch late on Friday lowered Finland's long-term rating by one level to AA from AA+, the lowest credit grade among the top three rating companies, almost a year after it issued a negative outlook on the debt. Finland's rating at Fitch is now the third-highest, eight levels above junk.

Turkey Upgraded by Moody's to Ba3 on Improved Policymaking