Standard&Poor's today stated that Compass Group PLC's (BBB+/Stable/--) recently announced intention to dispose of its TraveLodge and Little Chef businesses does not affect the ratings or outlook on the company. Compass' business and financial profile should not be materially affected by the TraveLodge and Little Chef disposals. These two brands account for only a small portion of total revenues, and their absence will not change the balance of the group's portfolio of activities. While there will be a loss in related cash flows, Standard&Poor's expects the company to use the sale proceeds to maintain lease-adjusted credit measures in line with the current rating, resulting in a broadly unchanged capital structure.
