S&P downgrades Cintas

S&P said it lowered the long-term ratings on Cintas Corp., including its corporate credit and senior unsecured debt ratings to BBB+ from A-.

The agency also said it affirmed the company’s A-2 short-term commercial-paper rating.

The outlook is stable.

The company recently announced that it intends to acquire G&K Services Inc. in a $2.3 billion debt-financed transaction, S&P explained.

The downgrades assume the company completes the proposed acquisition on the terms presented, the agency said.

The downgrades reflect the substantial pro forma credit measure deterioration that will result from the company’s proposed 100% debt-financed deal, S&P said.

The ratings also consider the company's strong position in the uniform rental and facility services industry, which will strengthen as a result of the acquisition of G&K, the agency said.

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