Fitch rates Arcos Dorados notes BBB-

Fitch Ratings said it assigned BBB- foreign- and local-currency issuer default ratings to Arcos Dorados BV and a BBB- rating to its proposed $450 million senior unsecured notes due 2019.

The outlook is stable.

The proceeds of the notes will be used to repay existing debt.

The agency said Arcos is the largest franchisee of McDonald's in the world in terms of system-wide sales and restaurants and has an experienced management team and low leverage. For the last 12 months ended June 30, the total debt-to-EBITDA ratio was 1.7 times.

Arcos has an expansion plan that Fitch called aggressive. The agency said that while this could be a concern under the current macroeconomic environment, Arcos has the flexibility to reduce capital expenditures.

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