S&P rates Armstrong loan BB-

Standard & Poor's said it assigned its BB- issue-level rating to the proposed senior secured credit facility issued by Armstrong World Industries Inc. and Armstrong Wood Products Inc.

The proposed facility consists of a $250 million revolver due 2018, a $500 million term loan A due 2018 and a proposed $525 million term loan B due 2020.

The recovery rating on the facility is 3, indicating S&P's expectation for meaningful (50% to 70%) recovery in the event of payment default.

"The BB- corporate credit rating and stable outlook on Armstrong reflect the combination of what we consider to be the company's 'fair' business risk and 'aggressive' financial risk profiles," S&P said in a news release.

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