S&P lifts Oriental Trading, assigns loan B

Standard & Poor's said it raised its corporate credit rating on Oriental Trading Co. Inc. to B from D.

The outlook is stable.

The agency said it also assigned a B issue-level rating and 4 recovery rating to the company's $220 million term loan.

On Feb. 10, the U.S. Bankruptcy Court overseeing the Chapter 11 proceedings of Oriental Trading issued its order confirming the company's plan of reorganization, the agency noted. Under the plan, the company's capital structure consists of a $50 million revolving ABL revolving credit facility and a $220 million term loan.

"Our rating reflects its view of Oriental Trading's vulnerable business risk profile," said S&P credit analyst Mariola Borysiak, "characterized by its presence in a very competitive and fragmented toys, novelties, party supplies, and home decor retailing industry."

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