Moody's rates ServiceMaster SGL-2

Moody's Investors Service said it assigned ServiceMaster Co. an SGL-2 speculative grade liquidity rating.

Although free cash flow is expected to be modest over the next four quarters, the company's liquidity profile reflects a $500 million revolving credit facility and a senior credit facility that contains no financial maintenance covenants, the agency said.

The $500 million revolving credit facility was undrawn and fully available at the close of the leveraged buyout led by Clayton, Dubilier & Rice, Inc., Moody's said. Borrowing to meet seasonal working capital requirements during the first half of 2008 is not expected to exceed $200 million and will be substantially repaid later this year, the agency said.

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