Fitch Cuts ServiceMaster Ratings

New York, NY, July 13, 2007--Credit-ratings agency Fitch Ratings on Monday downgraded some ratings for ServiceMaster Co., and said it will end ratings coverage on the company when it goes private.

In June, ServiceMaster said its shareholders approved its $4.57 billion takeover by private-equity company Clayton, Dubilier & Rice Inc.

The deal is expected to close in the third quarter.

Fitch said it downgraded ServiceMaster's issuer default rating and senior unsecured rating to "B" from "BB-."

A "B" rating is highly speculative and indicates there is a possibility of credit risk developing.

Fitch also said it will end coverage of ServiceMaster when it goes private.

However, it added under the proposed structure of ServiceMaster as a private company, if Fitch were still covering the company, its unsecured ratings would likely be in the "CCC" category, which indicates default is a real possibility.

"Fitch believes that the credit profile could face further pressure as financing costs could be higher than initial pro forma estimates," Fitch said in a statement.

"Also, even a modest cyclical downturn could negatively affect the company's capacity to service its obligations."