S&P assigns C.H.I. Overhead Doors loan B

Standard & Poor's said it assigned a B corporate credit rating to C.H.I. Overhead Doors Inc., along with a B rating to its proposed senior secured first-lien credit facilities with a 4 recovery rating.

The 4 rating indicates 30% to 50% expected default recovery.

The outlook is stable.

The ratings reflect an expectation that following the proposed refinancing of its existing debt and the return of capital to shareholders, leverage is likely to decline to 5x or below over the next several quarters resulting in an aggressive financial risk profile assessment, said Tobias Crabtree, an S&P analyst.

The rating also considers the company's adequate liquidity position and an expected covenant cushion of at least 20% over the next several quarters, the analyst said.

The company has a small market share relative to its competitors and a single manufacturing facility, which offsets its good profitability and high variable cost structure, he added.

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