S&P rates AOT Bedding loans BB-, B+

Standard & Poor's said it assigned its B+ corporate credit rating to AOT Bedding Holdings Corp.

At the same time, the agency said it assigned its BB- bank loan rating and its 1 recovery rating to the company's proposed $410 million of first-lien senior secured credit facilities and its B+ bank loan rating and its 2 recovery rating to the company's proposed $160 million second-lien senior secured credit facility.

Also, S&P said it lowered its corporate credit and bank loan ratings on National Bedding LLC to B+ from BB-. All ratings have been removed from CreditWatch with negative implications, where they were placed Aug. 2, 2004.

The downgrade reflects the company's weaker financial profile resulting from the company's significantly higher debt balance at closing, the agency said.

The ratings on AOT Bedding reflect its narrow business focus, aggressive financial policy and highly leveraged financial profile, S&P said, adding somewhat mitigating these factors are the company's well-recognized brands, solid market position and the mattress industry's relatively stable demand and significant barriers to entry.

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