Moody’s: Aramark to negative

Moody's Investors Service said it affirmed Aramark Services, Inc.'s corporate family rating at Ba2, probability of default rating at Ba2-PD, senior secured rating at Ba1 and senior unsecured rating at Ba3.

The SGL-1 speculative grade liquidity rating is unchanged.

The outlook was revised to negative from stable.

Aramark announced it will acquire Ameripride Services, Inc. for $1 billion and Avendra Ltd. for $1.35 billion. The purchase prices and transaction-related fees and expenses will be financed with over $2.35 billion of new debt.

"Although the two announced acquisitions are strategic and will benefit Aramark's competitive position, the almost 50% increase in debt outstanding from the all-debt acquisition financing drives financial leverage to above 5 times and is credit negative," Edmond DeForest, Moody's vice president and senior credit officer, said in a news release.

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