Research Update: Aramark 'BB+' Issuer Credit Rating Affirmed; New Debt Rated 'BBB-'; Outlook Negative On Weak But Improving Credit Ratios

U.S.-based food concession and uniform rental company Aramark remains largely on track to successfully integrate its recent debt-financed acquisitions, which closed less than a year ago and resulted in significant credit ratio deterioration. We are affirming our 'BB+' issuer credit rating because the company's financial performance has been satisfactory and its credit ratios are improving in line with our forecast. We are also assigning our 'BBB-' issue-level rating to the company's amended and extended revolving credit facility and foreign currency denominated term loans. At the same time we have affirmed our 'BBB-' issue-level rating on Aramark's B-2 and B-3 term loans, and our 'BB' issue-level rating on the company's senior unsecured notes. The negative outlook reflects Aramark's continued weak but

...+ U.S.-based food concession and uniform rental company Aramark remains largely on track to successfully integrate its recent debt-financed acquisitions, which closed less than a year ago and resulted in significant credit ratio deterioration. + We are affirming our '##+' issuer credit rating because the company's financial performance has been satisfactory and its credit ratios are improving in line with our forecast. + We are also assigning our '###-' issue-level rating to the company's amended and extended revolving credit facility and foreign currency denominated term loans. + At the same time we have affirmed our '###-' issue-level rating on Aramark's B-2 and B-3 term loans, and our '##' issue-level rating on the company's senior unsecured notes. The negative outlook reflects Aramark's continued weak but improving credit ratios following its debt-financed acquisitions. The rating could be lowered if Aramark is unable to further improve credit ratios--including adjusted leverage sustained...

Research Update