Moody’s ups Aramark debt to Ba3

Moody's Investors Service said it upgraded Aramark Services, Inc.'s senior unsecured debt to Ba3 from B1 and speculative grade liquidity rating to SGL-1 from SGL-2, while also assigning Ba3 ratings to its proposed senior unsecured notes due 2025.

The other credit ratings were affirmed, including the corporate family rating at Ba2, probability of default rating at Ba2-PD and senior secured at Ba1.

The outlook remains stable.

Net proceeds from the proposed senior unsecured notes, along with funds from its previously announced proposed multi-currency revolving credit facility due 2022, multi-currency term loan A due 2022, Japanese yen term loan C due 2022 and dollar-denominated term loan B due 2024, will be used to repay existing debt and add cash to the balance sheet.

Moody’s said the upgrade was driven by the reduced proportion of senior secured to total debt in Aramark’s capital structure pro forma for the announced financing transactions.

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