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Moody's: Aramark loans Ba3
Moody's Investors Service said it assigned a Ba3 to Aramark Corp.'s proposed new 6.5-year $1 billion senior secured term loan and senior secured revolving credit facility.
Moody's also said it affirmed the B1 corporate family rating, B1-PD probability of default rating, Ba3 secured debt and B3 unsecured debt ratings and SGL-2 speculative-grade liquidity rating.
The outlook is stable.
The ratings reflect Aramark's scale and recurring revenue stream, leading to expectations for modestly improved EBITDA, driving down debt-to-EBITDA to 5.5x. Its debt-to-EBITDA is high for a B1-rated service company at about 5.8x, the agency said.
The stable outlook reflects an expectation for low single-digit revenue growth and modest improvement in EBITDA over the next year, Moody's said.
This is based on slowly improving conditions across most service lines and a continued focus on aggressive cost management and business process improvements, the agency said.
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