S&P: ServiceMaster notes B-

Standard & Poor's said it assigned a B- senior unsecured debt rating to the ServiceMaster Co.'s proposed $300 million unsecured senior notes due 2020.

The recovery rating is 5, indicating 10% to 30% expected recovery in a default.

The proceeds will be used to repay outstanding debt.

The ratings reflect the company's highly leveraged financial profile, particularly since the company's balance sheet remains highly leveraged cash flow protection measures will continue to be weak, S&P said.

The agency said it continues to consider ServiceMaster's business risk profile to be fair, reflecting that the company's business will remain sensitive to still weak economic conditions and consumer spending, as well as seasonal weather conditions.

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