Moody's confirms Oreck

Moody's Investors Service said it confirmed the debt ratings of Oreck Corp., ending the review for possible downgrade started in September.

Moody's said it concluded that the effects of the hurricane are unlikely to impact Oreck's long term credit quality.

Affected ratings include the company's corporate family rating of B1 and $195 million secured term loan and $20 million secured revolving credit facility also at B1.

The stable rating outlook anticipates some volatility in revenue and margin levels in the upcoming year as the company normalizes operations, the agency added, noting the ratings continue to reflect the ongoing challenges of a narrow product line, the high cost of maintaining direct sales distribution strategy, geographic concentration of physical facilities and a relatively high debt burden.

Ratings are supported by Oreck's long history and strong brand recognition, the benefits of multiple channels of distribution and an experienced and motivated management team, Moody's said.

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