Georgia-based provider of uniform rentals and workplace supplies Vestis Corp. withdrew its full-year guidance and shifted to providing a quarterly revenue outlook. The company's revenue guidance for the third quarter of fiscal 2025 is weaker than originally expected due to lost business, lower customer volumes, and continued service issues, which we believe could hinder its growth plans. Therefore, we lowered all our ratings on Vestis by one notch, including our issuer credit rating, to 'B+' from 'BB-' because we now expect leverage will be sustained above our 4x downside threshold. The negative outlook reflects the possibility of a further downgrade if the company fails to improve its performance, stemming from ongoing challenges with weak new customer wins or high attrition
