S&P ups American Reprographics first-priority loan to BB

Standard & Poor's said it raised its rating on American Reprographics Co.'s $130 million first priority senior secured credit facility to BB from BB- and assigned its recovery rating of 1 to this credit facility.

S&P also affirmed its B rating on the company's $225 million second-lien term loan B and assigned a recovery rating of 4. Concurrently, S&P affirmed its BB- corporate credit rating on the company.

S&P said the upgrade of the first priority secured credit facility to a level one notch above the corporate credit rating reflects a reassessment of the recovery prospects for first-lien lenders given certain changes to S&P's future interest rate assumptions and given a modest prepayment of principal following the company's recently completed IPO.

The ratings on the company reflect its dependence on a single print industry segment (reprographics) and exposure to the cyclical commercial construction industry. Still, S&P said it recognizes the company's leading position in the architectural, engineering, and construction reprographics segment, and expects that the company's acquisition strategy will remain moderate.

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