S&P lifts DFS Furniture

Standard & Poor's said it raised its issue rating on DFS Furniture Holdings plc's 9¾% senior secured notes due 2017 to B+ from B. The issue rating is one notch above the corporate credit rating on DFS.

At the same time, the agency said it revised the recovery rating on the notes to 2 from 3. The new recovery rating reflects an expectation of substantial recovery for creditors in the event of a payment default.

S&P said it also affirmed its long-term corporate credit rating on DFS at B. The outlook is stable.

The agency said the rating actions follow DFS' opportunistic repurchase of senior secured notes in recent months. The notes repurchase has reduced the total amount of senior secured debt in the company's capital structure.

As a result, S&P said it expects higher recovery prospects for holders of the senior secured notes in an event of default.

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