S&P raises Hunter Fan loan to B-

Standard & Poor's said it affirmed its B corporate credit rating on Hunter Fan Co.

The outlook is stable.

At the same time, the agency raised the issue-level rating on the $55 million second-lien term loan to B- from CCC+ and revised the recovery rating to 5 from 6, indicating an anticipation of modest (10% to 30%) recovery in the event of payment default. Recovery expectations are in the lower half of the 10% to 30% range.

S&P also affirmed its BB- issue level rating and 1 recovery rating on Hunter's $100 million first-lien term loan due 2017. The 1 recovery rating indicates our anticipation of very high (90% to 100%) recovery in the event of a payment default.

The agency estimates that Hunter's adjusted debt outstanding as of June 30 was about $166.8 million.

The revised recovery and issue-level ratings on the $55 million second-lien reflect improved recovery prospects for lenders based on debt prepayment on the first-lien term loan.

"Our ratings on Hunter fan reflect the company's ownership by a financial sponsor, its narrow focus on and the discretionary nature of demand for ceiling fans, as well as significant customer and geographic concentration with over 90% of net sales in the U.S.," S&P credit analyst Beverly Correa said in a news release.

"The ratings also reflect the company's leading market share as a result of its longstanding relationships with customers and brand recognition of the Hunter and Casablanca brands."

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