Moody's assigns A3 to Cintas notes

Moody's Investors Service said it assigned an A3 senior unsecured rating to Cintas Corp. No. 2's planned $1.2 billion notes offering. The issuer is a wholly owned unit of Cintas Corp.

“The A3 senior unsecured rating reflects Cintas' leadership position in the specialized uniform rental sector, broadly diversified customer base, good revenue visibility derived from long-term contracts and modest financial leverage. Debt to EBITDA of 1.7x as of February 2022, pro forma with the proposed issuance and expected debt repayments, is modest, reflecting conservative financial policies,” Moody’s said in a press release. The agency affirmed the rating on Aug. 13, 2020.

The proceeds will be used to refinance debt and to provide added liquidity.

The outlook is stable.

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