Moody's might drop ServiceMaster

Moody's Investors Service said it placed ServiceMaster Co.'s credit ratings, including the B3 corporate family and B3-PD probability of default ratings, under review for downgrade.

The review was triggered by the company's announcement that it plans to spin off its TruGreen business segment to shareholders.

The speculative grade liquidity rating of SGL-2 remains unchanged.

"A dividend of the perhaps bottoming TruGreen business results in a smaller, less valuable ServiceMaster, a negative development as there is no planned debt reduction," Moody's senior analyst Edmond DeForest said in a news release.

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