S&P: ServiceMaster on watch

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

According to S&P, the CreditWatch listing follows the announcement that ServiceMaster's board of directors has decided to explore strategic alternatives to maximize value for shareholders, including the possible sale of the company.

The board has retained financial and legal advisers to facilitate this process, the agency said, adding that the company does not plan to release any additional information about the status of this review until a definitive agreement is entered into or the process is completed.

Although the ultimate outcome of this process is uncertain, these strategic alternatives could potentially weaken bondholder protection measures to levels below those appropriate for an investment-grade rating, S&P added.

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