S&P cuts Armstrong World, rates loan BB-

Standard & Poor's said it lowered its corporate credit rating on Armstrong World Industries Inc. to BB- from BB.

All ratings were removed from Creditwatch, where they were placed with negative implications on Nov. 8, the agency said.

The outlook is negative.

S&P said it also assigned a BB- issue-level rating and 3 recovery rating to Armstrong's proposed $1.05 billion senior secured credit facility, consisting of a proposed $250 million revolving credit facility due 2015, a $250 million term loan A due 2015 and a $550 million term loan B due 2017.

"The ratings downgrade reflects the significant increase in debt, as well as a more aggressive financial policy, in its view, following Armstrong's recently announced proposed recapitalization that includes an about $800 million sponsor dividend," said S&P credit analyst Thomas Nadramia.

© 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.