S&P lifts Hunter Fan loan to CCC+

Standard & Poor's said it raised its corporate credit rating on Hunter Fan Co. to B from B-.

The outlook is stable.

At the same time, the agency affirmed its issue-level ratings on the company's $133 million first-lien credit facility due 2017 at B+, and revised the recovery rating on it to 2 from 1, following the recent upsizing of the revolving credit facility. The 2 recovery rating indicates our expectation of substantial (70% to 90%) recovery for debtholders in the event of payment default.

In addition, S&P we raised its issue-level rating on the company's $55 million second-lien term loan to CCC+ from CCC. The recovery rating on the second-lien term loan is unchanged at 6, which indicates an expectation of negligible (0 to 10%) recovery for debtholders in the event of payment default.

"The upgrade reflects Hunter Fan's sustained operating performance and credit measures, and liquidity that we expect will remain adequate during the next year," S&P credit analyst Stephanie Harter said in a news release.

"For the 12 months ended April 30, 2013, sales increased about 10%, reflecting growth at several key customers in the core ceiling fan product lines. We estimate that adjusted EBITDA margin remained flat as increased volume and cost improvements offset unfavorable sales mix of lower margin products."

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