S&P lowers Aramark ratings |
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Wed, 10 Jan 2007 00:27
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NEW YORK - Standard & Poor's Ratings Services lowered its corporate credit rating for Aramark Corp. and its subsidiary Tuesday and withdrew ratings on the company's shelf debt.The corporate credit rating on Aramark and its subsidiary Aramark Services Inc. was lowered to 'B+' from 'BB+' and Aramark's existing senior unsecured debt was lowered to 'B-' from 'BB+', S&P said, because of its junior position of the unsecured debt to the new secured debt.Preliminary ratings on the company's shelf debt have been removed, and all ratings were removed from CreditWatch, with the outlook now 'Negative.'The company is being bought out and taken private by a group of investors led by Chief Executive Joseph Neubauer.Also, S&P gave a 'B+' loan and recovery rating to the company's $4.51 billion senior secured credit facilities. The facilities include a $600 million revolver a $3.66 million term loan and a $250 million synthetic letter of credit. The recover rating was set at '2', meaning there is a expectation of recovery up on default between 80 percent and 100 percent.Also, a 'B-' rating was given to $1.7 billion in senior unsecured notes due 2014 and to the proposed $570 million of subordinated debt due 2017.Shares rose a penny to close at $33.66 on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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