S&P drops Aramark

Standard & Poor's said it lowered its ratings on Aramark Corp. and its subsidiary, Aramark Services Inc., including its corporate credit rating to BB+ from BBB-.

All ratings remain on CreditWatch with negative implications where they placed on May 1, following an announcement that Aramark's board of directors had received a proposal from a group of investors led by its chairman and chief executive officer Joseph Neubauer, to acquire all of the outstanding shares of the company, for $32.00 per share in cash, S&P said.

The agency added that the downgrade reflects our assessment that Aramark no longer possesses an investment-grade financial policy following today's announcement that it has signed a definitive merger agreement, under which a group of investors including Joseph Neubauer will acquire Aramark for $33.80 per share, plus the assumption or repayment of $2.0 billion of debt in a transaction valued at $8.3 billion.

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