Research Update: Aramark Downgraded To 'BB' From 'BB+' On Economic Fallout From Coronavirus, Placed On CreditWatch Negative

U.S.-based food concession and uniform services provider Aramark faces dual threats from coronavirus (the virus that causes COVID-19) and the potential for a protracted economic downturn. We are lowering our issuer credit rating on the company to 'BB' from 'BB+'. We are also lowering our rating on the company's senior unsecured notes to 'BB-' from 'BB'. Our 'BBB-' rating on the senior secured bank credit facility is unchanged. All of our ratings on the company have been placed on CreditWatch with negative implications. The CreditWatch placement reflects the potential for a lower rating over the next few months after we assess the near-term and long-term effect of COVID-19 and economic conditions on Aramark's credit metrics and liquidity. However, the possibility

...- U.S.-based food concession and uniform services provider Aramark faces dual threats from coronavirus (the virus that causes COVID-19) and the potential for a protracted economic downturn. - We are lowering our issuer credit rating on the company to '##' from '##+'. We are also lowering our rating on the company's senior unsecured notes to '##-' from '##'. Our '###-' rating on the senior secured bank credit facility is unchanged. - All of our ratings on the company have been placed on CreditWatch with negative implications. - The CreditWatch placement reflects the potential for a lower rating over the next few months after we assess the near-term and long-term effect of COVID-19 and economic conditions on Aramark's credit metrics and liquidity. However, the possibility of a longer-than-expected CreditWatch exists due to the uncertainty and volatility created by current conditions....

Research Update