S&P provides BBB+ to Cintas notes

S&P said it assigned its BBB+ issue rating to Cintas Corp.'s proposed senior unsecured notes, issued by its primary operating subsidiary Cintas Corp. No. 2 and guaranteed by Cintas Corp.

Net proceeds will be used to fund a portion of the G&K acquisition.

All of the company’s existing ratings, including its BBB+ corporate credit rating, are unchanged.

The outlook is stable.

Pro forma for the proposed issuance, the agency estimates Cintas will have about $3.4 billion of debt outstanding.

S&P said the ratings incorporate Cintas’ strong position in the uniform rental and facility services industry, which will strengthen as a result of the proposed G&K acquisition.

The agency estimates Cintas' share of the outsourced uniform rental market including G&K will increase to at least 40%, compared to around 30% presently.

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