S&P: Oriental Trading loan B

Standard & Poor's said it assigned Oriental Trading Co. Inc.'s proposed $200 million secured term loan a preliminary B issue-level rating, with a preliminary 4 recovery rating, and expects to assign the reorganized company a B corporate credit rating with a stable rating outlook upon its emergence from bankruptcy protection.

The rating action reflects the company's announcement that the U.S. Bankruptcy Court for District of Delaware confirmed the company's Chapter 11 reorganization plan, S&P said. Oriental Trading expects to emerge from bankruptcy on Jan. 28.

The expected B corporate credit rating reflects the company's vulnerable business risk profile, characterized by its presence in a very competitive and fragmented toys, novelties, party supplies and home decor retailing industry, the agency said.

The rating also considers that recent operating trends show signs of stabilization with some improvement in sales per customer and increase in average order value, S&P said.

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