S&P: ServiceMaster still on watch

Standard & Poor's said its ratings on The ServiceMaster Co., including the BBB- corporate credit rating, remain on CreditWatch with negative implications.

The ratings were initially placed on CreditWatch with negative implications on Nov. 28, following the announcement that ServiceMaster's board of directors had decided to explore strategic alternatives to maximize value for shareholders, including the possible sale of the company, the agency noted.

While the board has retained financial and legal advisers to facilitate this process, the company has not released any additional information about the status of this review, S&P said.

However, any decision announced by the company that would significantly increase ServiceMaster's debt and weaken existing credit measures out of investment grade levels would likely result in its ratings being lowered to the speculative-grade category and remaining on CreditWatch until full financing details are disclosed, the agency added.

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