S&P downgrades McDonaldd's to BBB+, but confident on strategy

Standard&Poor's took down McDonald's debt ratings by a notch following the fast food giant's announcement that it would splsah out a further $10bn on additional share buybacks by the end of 2016, but expressed confidence in the company's strategy.

The debt rating agency's analysts said the programme, which was to be "substantialy" financed by issuing debt, will "measurably" weaken the company's credit metrics in comparison with what they had penciled in.

The compay's credit was lowered to BBB+ from A-, albeit with a 'stable' outlook.

"The outlook is stable, reflecting our view that there will be continued progress in the US and that credit metrics will not rise above 4x over the next two years as the company balances further share repurchases and a substantial dividend with the timing of success in the business turnaround."