Fitch Affirms ARAMARK's IDR at 'B'; Outlook Stable

Business Wire, March 10, 2008

CHICAGO -- Fitch Ratings has affirmed ARAMARK Corporation's (ARAMARK) ratings as follows:

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

--$600 million revolving senior secured credit facility due 2013 'BB-/RR2';

--$4.15 billion senior secured term loans due 2014 'BB-/RR2';

-$200 million senior secured synthetic letter of credit facility due 2014 'BB-/RR2';

--$1.78 billion senior unsecured notes due 2015 'B-/RR5';

--$250 million senior unsecured notes due 2012 'CCC /RR6'.

The Rating Outlook is Stable.

Fitch has simultaneously withdrawn the IDR rating for ARAMARK Services, Inc., which is no longer a debt issuing entity.

These rating actions affect approximately $6.0 billion of debt at Dec. 28, 2007.

ARAMARK's ratings and Outlook incorporate its high financial leverage, below average operating risk and Fitch's expectations that credit statistics will remain at levels consistent with the company's current ratings in the near term. ARAMARK significantly increased debt levels following its $8.6 billion management-led leverage buy-out in 2007. However, ARAMARK's strong global market share in food service, entrenched position in the North American uniform rental business and high customer retention rates provide considerable and relatively stable on-going cash flow generation.

For the latest twelve month period ended Dec. 28, 2007, ARAMARK's total debt-to-operating earnings before interest, taxes, depreciation and amortization (EBITDA) ratio was 5.8 times (x) and its operating EBITDA-to-gross interest expense ratio was 2.1x. 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 6.3x.

During this same period, ARAMARK generated approximately $500 million of cash flow from operations and $180 million of free cash flow. ARAMARK's funds from operations (FFO) fixed charge coverage ratio was 1.8x. Although ARAMARK's debt obligations increased considerably over the previous 12 month period, Fitch views its credit protection measures as adequate for the current ratings level. Good liquidity, a proven ability to manage through various economic cycles and a diversified customer base should help mitigate any negative ramifications from above average food cost inflation and a slowing U.S. economy.

ARAMARK is in compliance with all of its debt covenants. The most significant financial covenant in ARAMARK's bank facility is a maximum consolidated secured debt ratio of 5.875x through March 31, 2008, stepping down to 4.25x by Dec. 31, 2013. At Dec. 28, 2007, the actual ratio was 3.86x, leaving the company significant cushion under this agreement. ARAMARK's ability to incur additional debt and make restricted payments is limited by a minimum interest coverage ratio of 2.0x. At Dec. 28, 2007, the actual ratio was 2.1x.

The recovery ratings for ARAMARK's debt consider bondholder recovery in a distressed situation. Given assumptions regarding the company's enterprise value as a going concern, Fitch anticipates 71%-90% or superior recovery for ARAMARK's first priority secured bank debt and 11%-30% or below average recovery for its 8.5% and floating rate unsecured notes due 2015. Conversely, the recovery rating for ARAMARK's 5% unsecured notes due 2012 has been notched lower at 'RR6' to reflect their subordinate position in the company's capital structure and Fitch's expectation that recovery for these bondholders would be negligible in a financial restructuring. Unlike the 2015 notes, which are fully and unconditionally guaranteed by substantially all of the companies domestic material subsidiaries, the 2012 notes are only guaranteed by ARAMARK and its holding company.

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.