“Standard & Poor’s does not believe that McDonald’s will be able to regain its former stature for the foreseeable future,” analyst Gerald Hirschberg wrote in a research note.
National Post
May 9, 2003
McDonald's Debt
OAK BROOK, ILL. – McDonald’s Corp.’s long-term debt ratings have been cut by Standard & Poor’s because of falling profit and concern sales may be hurt by competition and less demand for fast food. McDonald’s senior unsecured debt was reduced to A from A+ and its subordinated debt was downgraded to A- from A. The ratings might be cut again, Standard & Poor’s said in a statement. McDonald’s, the world’s largest hamburger chain, had about $10-billion in debt on Dec. 31. “Standard & Poor’s does not believe that McDonald’s will be able to regain its former stature for the foreseeable future,” analyst Gerald Hirschberg wrote in a research note. McDonald’s had its first loss ever in the fourth quarter after a two-year sales slump. New chief executive James Cantalupo is trying to boost quality to keep customers. Bloomberg News
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Risks: McStumble, Free-fall in fast-food industry worth, United States, 20030509 McDonald’s debt
