U.S.-based Allied Universal Topco LLC (formerly USAGM Topco LLC) has performed below our expectation due to higher–than-expected integration-related costs and a tightening labor market that pressures operating margins. We are affirming our 'B+' corporate credit rating on Allied, reflecting our view that despite the higher-than-expected integration-related cost, the company's integration efforts remain on schedule and that commercial integration is largely complete with minimal client attrition while it continues to win new accounts and expand the top line. We are revising our outlook to negative to reflect our view that higher integration-related costs will result in elevated credit metrics in the next 12 months, making it more challenging for Allied to improve leverage to the low-7x area in the next 12–18
