S&P: Oreck on watch

Standard & Poor's said it placed all of its ratings on Oreck Corp., including the B+ corporate credit rating, on CreditWatch with negative implications.

The agency said that the CreditWatch listing is based on the company's weaker-than-expected operating performance, which has resulted in key credit protection measures that are below anticipated levels for the rating and tight financial covenants under its bank facility.

According to S&P, the company's operating performance has been significantly affected over the past year by the impact of Hurricane Katrina.

While operations have fully resumed, Oreck's financial results continued to trend below expected levels in the first quarter of fiscal 2007, further pressuring covenants, the agency said, adding that affected ratings include the company's senior secured at B+ with a recovery rating of 4.

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