S&P assigns Armored AutoGroup B, loan B+, notes CCC+

Standard & Poor's said it assigned a B corporate credit rating to Armored AutoGroup Inc., along with a B+ rating to its $50 million revolving credit facility due 2015 and $300 million term loan due 2016. A recovery rating on the senior secured credit facilities is 2, indicating 70% to 90% recovery in a default.

The agency also said it assigned a CCC+ rating on the company's $275 million senior unsecured notes due 2018. The recovery rating is 6, indicating 0% to 10% recovery in a default.

The outlook is negative.

The proceeds were used to finance Avista Capital Partners' acquisition of Armored AutoGroup, formerly a division of Clorox Co., S&P said.

The rating reflects the company's highly leveraged financial profile and vulnerable business profile, the agency said.

The company's narrow business focus, vulnerability to commodity price volatility and the economy, and its lack of track record as a stand-alone company also constrains the ratings, S&P added.

© 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.