Aramark Outlook Revised To Positive From Stable On Profit Growth; 'BB' Rating Affirmed

U.S.–based Aramark's profitability and credit ratios have been generally in line with our expectations. We expect continued satisfactory operating performance, which should lead to further improvement in the company's credit ratios, including debt to EBITDA improving to the mid-3x area next year from around 4x currently. We are revising our rating outlook on Aramark to positive from stable and affirming our 'BB' corporate credit rating on the company. We are also affirming our 'BBB-' and 'BB-' issue-level ratings on the company's senior secured and senior unsecured debt, respectively. The '1' recovery rating on the senior secured debt and '5' recovery rating on the senior unsecured debt are unchanged. The positive rating outlook reflects the potential that we could upgrade Aramark

...+ U.S.¡based Aramark's profitability and credit ratios have been generally in line with our expectations. We expect continued satisfactory operating performance, which should lead to further improvement in the company's credit ratios, including debt to EBITDA improving to the mid-3x area next year from around 4x currently. + We are revising our rating outlook on Aramark to positive from stable and affirming our '##' corporate credit rating on the company. + We are also affirming our '###-' and '##-' issue-level ratings on the company's senior secured and senior unsecured debt, respectively. The '1' recovery rating on the senior secured debt and '5' recovery rating on the senior unsecured debt are unchanged. + The positive rating outlook reflects the potential that we could upgrade Aramark over the next 12 months if the company continues to strengthen its credit ratio, including debt to EBITDA improving to the mid-3x area due to a combination of modest profit growth and debt reduction. NEW...

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