S&P: Rentokil view to negative

S&P said it revised to stable from negative the outlook on Rentokil Initial plc and related entity Rentokil Initial 1927 plc.

The agency also said it affirmed the BBB long-term and A-2 short-term corporate credit ratings on Rentokil and Rentokil Initial 1927.

S&P also said it affirmed the BBB ratings on Rentokil's senior unsecured notes.

The outlook revision reflects a view that the group has made good progress in integrating Steritech, resulting in a lowering of execution risk and delivery of synergies, the agency said.

S&P said it now anticipates that Rentokil will post improved earnings as it benefits from full-year consolidation of the acquisition and a reduction in one-off costs.

Given the reduced execution risk and good organic growth in North America and emerging countries, the agency said it now anticipates a steady improvement in the group's credit metrics in 2016 and 2017 thanks to EBITDA growth and lower debt leverage as a result of the solid discretionary cash flow generation.

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