S&P rates Armstrong loan BB-

Standard & Poor's said it affirmed the BB- corporate credit rating on Armstrong World Industries Inc.

The outlook is negative.

The agency also said it assigned a BB- rating and 3 recovery rating to its recently amended $550 million term loan B due 2018. The recovery rating of 3 indicates 50% to 70% recovery in a default.

The agency also said it affirmed the BB- rating and 3 recovery rating on Armstrong's existing $250 million revolving credit facility due 2015 and $250 million term loan A due 2015.

The ratings reflect the company's aggressive financial risk profile, including leverage of about 5x as of Dec. 31, 2010, S&P said.

The ratings also consider its aggressive financial policy following a November recapitalization that included an $800 million sponsor dividend, the agency said.

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