S&P: Orchard Supply, loan B

Standard & Poor's said it assigned a B corporate credit rating to Orchard Supply Hardware LLC, along with a B rating and 4 recovery rating on its existing $174 million term loan due 2013.

The outlook is stable.

The ratings reflect an expectation that declines in operating results in 2011 will be limited as negative sales trends moderate, S&P said.

Orchard Supply may have the ability to partly offset cost pressures by pricing and merchandising change, while tightly managing expenses, the agency said.

As such, S&P said it expects credit protection measures to weaken modestly from current levels with its total debt-to-EBITDA ratio increasing to about 6.1 times in fiscal 2011 from 5.9 times in fiscal 2010.

© 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.