New York, NY, November 30, 2006--Moody's Investors Service changed the rating outlook of ServiceMaster Co. to negative from stable after the company said it might put itself up for sale.
Moody's said Servicemaster's announcement "creates uncertainty around the company's capital structure and signals that the company may no longer be committed to maintaining an investment grade credit profile."
ServiceMaster on Tuesday said its board hired Morgan Stanley and Goldman Sachs to explore the possible sale and other options.
If ServiceMaster enters into a definitive agreement that would substantially increase its financial leverage, Moody's said it would probably review its ratings for a possible downgrade.
Moody's affirmed the Baa3 senior unsecured long term debt ratings it has on Downer's Grove, Ill.-based ServiceMaster.
