S&P affirms Oreck, gives loans B-, CCC

Standard & Poor's said it affirmed its B- corporate credit ratings on Oreck Corp.

At the same time, the agency said it removed all ratings from CreditWatch with negative implications, where they were placed on March 12, reflecting its concerns about Oreck's liquidity and continued significantly weaker-than-expected operating performance triggered by the impact of Hurricane Katrina on the Co.'s operations.

The outlook is negative.

Also, S&P said it assigned its loan and recovery ratings to Oreck's proposed $130 million first-lien term loan facility and $20 million first-lien revolving credit facility.

The agency added that the loans were rated B- with a recovery rating of 3, adding that it assigned ratings to the company's proposed $50 million second-lien term loan facility at CCC with a recovery rating of 5.

The agency said that the rating affirmation is based on Oreck's improved near-term liquidity as a result of the planned bank facilities.

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