S&P rates Aramark loan BB+

S&P said it assigned its BB+ issue-level rating to Aramark Services Inc.'s proposed $833 million senior secured term loan B due 2028. The recovery rating is 1, reflecting an expectation for very high (90%-100%; rounded estimate 95%) recovery in default.

The rating is consistent with S&P’s rating on Aramark’s revolver and term loan.

The company will use the proceeds to repay its term loan B-2, which aggregates about $833 million. “We expect to withdraw our ratings on the B-2 term loan following repayment. The transaction is leverage neutral,” S&P said in a press release.

All S&P’s other Aramark ratings, including the BB- credit rating on the parent company and the B+ senior unsecured note ratings, are unchanged. However, the senior unsecured notes' recovery expectations remain at the low end of the agency’s 10% to 30% range.

The outlook is stable.

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