Research Update: Outdoor Home Services Holdings LLC Outlook Revised To Stable From Negative; 'B' Rating Affirmed

U.S.–based lawn and shrub care company, Outdoor Home Services Holdings LLC, parent company of TruGreen LP (TruGreen), should have stable performance this year, despite macroeconomic headwinds as a result of the pandemic. The company's operating performance for the quarter ended July 4, 2020, exceeded S&P Global Ratings' previous expectations. We now expect TruGreen's revenue will be relatively flat for the year as we believe its customer cancellations have stabilized after initial customer losses when stay-at-home orders were first announced in March. We project the company will end fiscal 2020 with leverage in the low-5x area, compared with our prior forecast of over 6x. As a result, we are revising the outlook to stable from negative. At the same time, we

...- U.S.¡based lawn and shrub care company, Outdoor Home Services Holdings LLC, parent company of TruGreen LP (TruGreen), should have stable performance this year, despite macroeconomic headwinds as a result of the pandemic. - The company's operating performance for the quarter ended July 4, 2020, exceeded S&P Global Ratings' previous expectations. We now expect TruGreen's revenue will be relatively flat for the year as we believe its customer cancellations have stabilized after initial customer losses when stay-at-home orders were first announced in March. - We project the company will end fiscal 2020 with leverage in the low-5x area, compared with our prior forecast of over 6x. - As a result, we are revising the outlook to stable from negative. - At the same time, we are affirming all of our ratings on Outdoor Home Services Holdings and TruGreen, including our 'B' issuer credit ratings. - The stable outlook reflects our expectation that the company's performance should be stable as lawn-care...

Research Update