S&P ups Koosharem, rates loans B+, CCC+

Standard & Poor's said it raised its ratings on Koosharem Corp., including raising the corporate credit rating to B from B-.

The outlook is stable.

At the same time, the agency said it assigned a bank loan rating of B+, one notch above the corporate credit rating and a recovery rating of 2, to Koosharem's $300 million first-lien bank loan facilities.

The agency noted that the first-lien facilities consist of a $50 million revolving credit facility due 2012 and a $250 million term loan B due 2014.

S&P said it also assigned a bank loan rating of CCC+, two notches below the corporate credit rating and a recovery rating of 6, to the company's $100 million second-lien term loan B due 2014, indicating its expectation of negligible recovery of principal in the event of a payment default.

"The upgrade reflects improving operating performance and the realization of significant cost reductions as a result of the successful integration of Koosharem's acquisition of formerly underperforming RemedyTemp Inc. last year," said S&P credit analyst Hal F. Diamond.

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