S&P lifts Rentokil Initial view to positive

Standard & Poor's said it revised the outlook on Rentokil Initial plc to positive from stable.

The agency also said it revised the outlook on related entity, Rentokil Initial 1927 plc, to positive from stable.

S&P also affirmed the BBB- long-term corporate credit ratings on Rentokil Initial and Rentokil Initial 1927, along with the BBB- ratings on Rentokil Initial's senior unsecured notes.

The outlook revision reflects a view that Rentokil Initial will show an improvement in operating margins and subsequently credit metrics following the sale of the loss-making parcel delivery business, City Link, S&P said.

The agency said it expects current restructuring efforts to produce additional savings that should improve cash flow generation.

The disposal of City Link also should allow management to focus fully on the company's other business segments, S&P said.

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