S&P ups Merrill loan recovery to 2

Standard & Poor's said it revised its recovery rating on Merrill Communications LLC's senior secured first-lien credit facilities to 2, indicating its expectation of substantial recovery for lenders in the event of a payment default, from 3.

In addition, the agency said it raised its issue-level rating on these obligations to CCC+, one notch higher than the CCC corporate credit rating on holding company parent Merrill Corp., from CCC, in accordance with its notching criteria for a 2 recovery rating.

S&P added that its ratings on Merrill's senior secured second-lien term loan remain unchanged, noting that the rating revisions to the first-lien debt reflect a recent amendment to the company's first-lien credit agreement, which reduced the revolving credit facility's commitment to $40 million from $60 million.

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