Fitch Affirms ARAMARK's IDR at 'B'; Downgrades Sr. Unsecured Notes to 'CCC'; Outlook Stable

CHICAGO--(Business Wire)--
Fitch Ratings has affirmed the following ratings for ARAMARK Corporation
(ARAMARK):

--Long-term Issuer Default Rating (IDR) 'B';

--Senior secured credit facilities 'BB-/RR2'.

Fitch has simultaneously downgraded the following ratings:

--Senior unsecured notes due 2015 to 'CCC/RR6' from 'B-/RR5';

--Senior unsecured notes due 2012 to 'CCC/RR6' from 'CCC+/RR6'.

The Rating Outlook is Stable.

These rating actions affect approximately $6.0 billion of debt at Jan. 2, 2009.

ARAMARK's ratings reflect its high financial leverage, its strong market share
positions and its high client retention rate. Although the company's revenue is
being negatively impacted by the economic recession, its diversified customer
base and ability to reduce costs should mitigate downside risk on operating
earnings and cash flow. A significant portion of ARAMARK's revenue is generated
from less economically sensitive sectors; such as Education, Healthcare and
Corrections. Furthermore, no single client represented more than 1% of the $13.5
billion of total sales it generated at the fiscal year ended Oct. 3, 2008. Fitch
views ARAMARK's operating structure as more recession resistant than others in
the foodservice industry given this diversity, the contract nature of its
business and its highly variable cost structure.

The downgrade of the company's 2015 and 2012 senior unsecured notes is driven by
Fitch's recovery analysis for companies with IDR ratings of 'B+' or below. The
recovery ratings for ARAMARK's debt consider bondholder recovery in a distressed
situation while incorporating the fact that, in the current environment,
recovery rates have declined across most industries. Fitch anticipates 71%-90%
or superior recovery for ARAMARK's secured bank debt and negligible recovery for
unsecured bondholders.

ARAMARK's credit profile is supported by its lack of near term maturities and
its good liquidity. The company's most significant upcoming maturity is $250
million of 5% unsecured notes due June 1, 2012. During the latest 12 month (LTM)
period ended Jan. 2, 2009, ARAMARK generated $63 million of free cash flow (cash
flow from operations less capital expenditures and dividends) and at Jan. 30,
2009 the company had $520 million available under its $600 million revolver
which expires January 2013.

ARAMARK's credit statistics are currently adequate for the rating category. For
the LTM period ended Jan. 2, 2009, total debt-to-operating earnings before
interest, taxes, depreciation and amortization (EBITDA) was 5.6 times (x),
operating EBITDA-to-gross interest expense was 2.1x and funds from operations
(FFO) fixed charge coverage was 1.8x. Total adjusted debt-to-operating earnings
before interest, taxes, depreciation, amortization and rental expense (EBITDAR),
which accounts for operating leases and balances outstanding under ARAMARK's
$250 million accounts receivable securitization program, was 6.1x.

ARAMARK is in compliance with all of its debt covenants. ARAMARK's maximum
consolidated secured debt ratio of 5.5x steps down by 0.25x increments annually
every June 30 until 2013. At Jan. 2, 2009, the ratio (as defined by its credit
agreement) was 3.77x, leaving the company significant cushion. ARAMARK's ability
to incur additional debt and make restricted payments is limited by a minimum
interest coverage ratio of 2.0x. At Jan. 2, 2009, the ratio (as defined by its
credit agreement) was 2.2x. Given ARAMARK's current level of liquidity, lack of
near-term maturities and its balanced financial strategy, Fitch does not
anticipate a need to incur incremental debt.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings
Chicago:
Carla Norfleet Taylor, CFA, +1-312-368-3195
Wesley E. Moultrie II, CPA, +1-312-368-3186
Christopher M. Collins, +1-312-368-3196
New York:
Cindy Stoller, +1-212-908-0526 (Media Relations)
cindy.stoller@fitchratings.com

Copyright Business Wire 2009