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February 13, 2008 |
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ARAMARK CORP: Improved Credit Prompts S&P to Affirm B+ Rating Standard & Poor's Ratings Services has affirmed its 'B+' corporate credit rating on Aramark Corp. At the same time, S&P's raised its rating on the company's senior secured debt to 'BB' from 'BB-'. The recovery rating was changed to a '1', indicating the expectation for very high (90%-100%) recovery in the event of a payment default, from '2'. The outlook is stable. The company had approximately US$5.9 billion of debt outstanding as of Dec. 28, 2007. "The rating actions reflect improved recovery prospects on the credit facilities following Aramark's approximately US$400 million in voluntary prepayments during fiscal 2007," said S&P's credit analyst Jean C. Stout. The ratings on Aramark Corp. continue to reflect its highly leveraged financial profile and significant cash flow requirements to fund interest and capital expenditures. These factors are somewhat mitigated by the company's good position in the competitive, fragmented markets for food and support services and uniform and career apparel. These positions translate into a sizable stream of recurring revenues and healthy cash flow generation. Headquartered in Philadelphia, Pennsylvania, Aramark Corp. (NYSE: RMK) -- http://www.aramark.com/ -- is a professional services organization, providing food services, facilities management, hospitality services, and uniforms and career apparel to health care institutions, universities and school districts, stadiums and arenas, businesses, prisons, senior living facilities, parks and resorts, correctional institutions, conference centers, convention centers, and public safety professionals around the world. Aramark has operations in Belgium, Czech Republic, Germany, Ireland, UK, Mexico, and Chile, among others. |
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