S&P affirms AMF, gives loans B+, CCC+

Standard & Poor's said in a corrected rating that it affirmed its B corporate credit rating on AMF Bowling Worldwide Inc.

At the same time, the agency said it assigned a bank loan rating of B+, one notch above the corporate credit rating on the company, to AMF's proposed $270 million first-lien credit facilities.

The recovery rating is 1, indicating the expectation for full recovery of principal in the event of a payment default, the agency said, noting that the first-lien credit facilities consist of a $60 million revolving credit facility due 2012 and a $210 million term loan B due 2013.

The agency said it also assigned a CCC+ bank loan rating, two notches below the corporate credit rating on AMF, to the company's proposed $105 million second-lien term loan due 2013, adding that the recovery rating is 5.

S&P added that the ratings on AMF reflect weak bowling industry fundamentals, an aggressive financial policy and high capital spending over the intermediate term.

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