S&P Global recently upgraded Philadelphia-based Aramark’s credit ratings and Moody’s Investor Service issued a revised positive outlook.
“We are pleased to see broad recognition of our strong financial performance, consistent operational execution, and disciplined capital allocation strategies, including our commitment to deleveraging,” Jim Tarangelo, Aramark chief financial officer, said. “These positive credit upgrades reflect the dedication of our teams around the globe in delivering exceptional hospitality experiences to our clients and performing at a high level every day.”
S&P upgraded Aramark’s credit rating from BB to BB+ citing the company’s growth and expanding profitability in its business segments. The company attributes the growth to new business, contracts and client retention.
Moody’s upgraded Aramark’s outlook to positive and affirmed corporate family rating at Ba2, citing a belief that consistent volume growth in Aramark’s base business, combined with new business, will further drive credit metrics and free cash flow.
Both agencies also referenced Aramark Nexus in their decisions. The new platform provides hyperscale AI data centers and other large-scale, complex, and often remote operating environments, with hospitality and work force support services.
Aramark is a hospitality company that provides food services, facilities management and workplace experiences. It employs approximately 270,000 people.