S&P rates Aramark Services notes BB-

S&P said it assigned its BB- issue rating to Aramark Services Inc.’s proposed senior unsecured notes due 2026, with a 5 recovery rating, indicating S&P’s view that creditors could expect recovery in the lower half of the 10% to 30% range in the event of a payment default.

The new notes and a proposed add-on to the existing unsecured notes are part of the company’s proposed $1 billion issuance, the allocation for which is yet to be determined.

S&P’s BB- issue and 5 recovery rating on the existing senior unsecured notes due 2024 are unchanged by the add-on.

All of the existing ratings on the company, including the BB corporate credit rating, BBB- senior secured debt ratings and BB- senior unsecured note ratings, are unchanged by the transaction. The outlook is stable.

S&P said the ratings on Aramark incorporate the company’s leading (though not dominant) position in the competitive and fragmented food and support services market, and its sizable business with customers in relatively stable service segments (heath care, education, and corrections), which S&P believes translates into consistent profitability.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.