S&P: Quality Home view to negative

Standard & Poor's said it affirmed Quality Home Brands Holdings, LLC's CCC+ corporate credit rating, along with the B issue-level rating on its $20 million revolving credit facility due 2014. The recovery rating is 1, indicating 90% to 100% recovery in a default.

The agency also said it affirmed the CCC ratings for both the company's $105.9 million pay-in-kind term loan due 2014 and the $125.6 million term loan due 2014. The recovery rating for each of the term loans is 5, indicating 10% to 30% recovery in a default.

The outlook was revised to negative from developing.

The ratings reflect the company's highly leveraged financial profile, narrow product focus and exposure to the weak housing industry and U.S. economy, S&P said.

This has significantly and adversely affected the company's operating performance over the past two years, the agency said.

S&P said it is concerned about the uncertainty that recent management turnover might have on operations going forward.

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