Arcos Dorados Achieves Full Investment Grade with S&P’s Initial Rating of ‘BBB-’

SEC Filing 6-K (0000950103-25-009601)

Arcos Dorados Holdings Inc. (NYSE: ARCO) announced that S&P Global Ratings 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. S&P 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. The strategic benefits of the recently renewed MFA with McDonald’s, valid through the end of 2044, with an additional 20-year renewal option, were also emphasized. S&P noted the Company’s sound liquidity position, broad geographic footprint, and capacity to withstand a potential Brazilian sovereign stress scenario. Achieving full investment grade status reinforces Arcos Dorados’ commitment to maintaining a solid financial position and enhances its standing in global capital markets.