S&P: Quality Home on developing watch

Standard & Poor's said it revised the CreditWatch status on Quality Home Brands Holdings LLC to developing from negative.

The agency said it placed the CCC rating on CreditWatch on April 8, following the company's weak operating performance and weaker-than-expected credit measures for the year ended Dec. 31, 2007.

The revision also reflects concerns that the company will remain challenged to restore operating results and meet bank financial covenants in the remainder of 2008, S&P said, given the weak housing market and current economic conditions.

The agency said the revision follows Quality Home Brands' receipt of an amendment to its first-lien credit facility, which will provide covenant relief and improve its liquidity.

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