S&P affirms Hunter Fan

Standard & Poor's said it affirmed its B corporate credit rating on Hunter Fan Co. and revised its recovery rating on the first-lien portion of the company's planned senior secured bank facility to 3 from a 2.

The revised recovery rating indicates an expectation of meaningful recovery of principal in the event of a payment default and is based on Hunter Fan increasing the first-lien portion of bank facility to $175 million, inclusive of a $15 million delayed-draw term loan portion, from $160 million and the second-lien portion of the facilities being reduced to $60 million from $75 million, the agency said.

Hunter Fan's total debt is not expected to increase from previous pro forma levels as a result of the revised transaction, the agency added.

The outlook is negative.

S&P said that the corporate credit ratings on Hunter Fan reflect the company's leveraged capital structure, narrow product focus, small size and customer and supplier concentration.

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