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TEXT-S&P rates Cintas Corp's notes 'BBB+'
June 5, 2012 / 6:57 PM / 5 years ago

TEXT-S&P rates Cintas Corp's notes 'BBB+'

 (The following statement was released by the rating agency)	
 June 5 - Standard & Poor's Ratings Services said today that it assigned a
'BBB+' senior unsecured debt rating to Cincinnati-based Cintas Corp.'s 
proposed $250 million senior unsecured notes due 2022. We expect the proposed
notes, which are being issued by subsidiary Cintas Corp. No. 2, to be issued
under its Rule 415 shelf registration statement filed July 31, 2009.	
	
All of the company's existing ratings, including the 'BBB+' corporate credit 	
rating, remain unchanged. Our rating outlook is stable. Pro forma for the 	
proposed issuance, we estimate Cintas will have about $1.3 billion of debt 	
outstanding.	
	
The corporate credit rating on Cintas reflects Standard & Poor's analysis that 	
the company's business risk profile continues to be "satisfactory" and its 	
financial risk profile remains "intermediate." We forecast financial ratios 	
will remain indicative of an intermediate financial risk profile through 	
fiscal year-end 2013, including adjusted leverage of about 2x, funds from 	
operations (FFO) to total debt of about 40%, and adjusted total debt to 	
capital of about 40%. Our business risk assessment reflects the company's 	
continuing solid market position in the uniform services industry, diverse 	
customer base, and potential cross-selling opportunities. Our assessment also 	
incorporates our view that the company will continue to be highly dependent on 	
U.S. employment levels and sensitive to elevated material and transportation 	
costs. 	
	
(For the complete corporate credit rationale, please see Standard & Poor's 	
summary analysis on Cintas, published on RatingsDirect on April 10, 2012.)	
	
RELATED CRITERIA AND RESEARCH	
  -- Business Risk/Financial Risk Matrix Expanded, May 27, 2009	
	
RATINGS LIST	
Cintas Corp.	
 Corporate credit rating         BBB+/Stable/A-2	
	
Rating Assigned	
Cintas Corp. No. 2	
 Senior unsecured 	
  $250 mil. notes due 2022       BBB+	
	
	
Complete ratings information is available to subscribers of RatingsDirect on 	
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 	
by this rating action can be found on Standard & Poor's public Web site at 	
www.standardandpoors.com. Use the Ratings search box located in the left 	
column.	
	
 (New York Ratings Team)	
 

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