S&P ups Knowles ratings

Standard & Poor's said it raised its corporate credit rating on Knowles Electronics Holdings Inc. to B- from CCC+ and raised its subordinated debt rating to CCC from CCC-.

The outlook is positive.

S&P said the ratings action is based on Knowles' increased financial flexibility following its recently executed amendment to its credit agreement. Under the terms of the amendment, Knowles replaced its $36 million term loan C facility with a new $48 million term loan D facility. A substantially lower interest rate on the new facility reduces the company's interest burden, while also providing about $9 million in additional liquidity, net of fees.

S&P said the ratings reflect the company's limited revenue base, weak cash flow generation and highly leveraged financial profile. These are only partially offset by its solid niche market position and adequate near-term liquidity.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.