S&P affirms Armstrong World

Standard & Poor's said it affirmed its BB- corporate credit rating on Armstrong World Industries Inc. The outlook is stable.

At the same time, the agency said it affirmed its BB- issue-level ratings on the company's proposed upsized $1.3 billion senior secured credit facility. The recovery rating remains 3.

"The ratings affirmation follows Armstrong's recent announcement that it was considering the issuance of a $500 million special dividend to shareholders, funded through the combination of excess balance sheet cash and a $250 million add-on to its existing term loan B due 2018," said S&P credit analyst Megan Johnston in a news release.

As a result of the proposed additional debt, S&P said it expects total adjusted leverage to increase to about 4x by year-end 2012, compared with about 3.5x as of the end of 2011, but to remain within levels considered to be in line with the BB- rating.

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