S&P ups Athlaction view to stable

Standard & Poor’s said it revised its outlook on Athlaction Holdings LLC to stable from negative and affirmed the B corporate credit rating.

At the same time, S&P affirmed the B+ issue-level rating on the company’s first-lien term loan maturing 2020 and revolving credit facility. The recovery rating remains 2, indicating an expectation of substantial (70% to 90%) recovery in the event of a payment default.

S&P also affirmed its CCC+ issue-level rating on the second-lien term loan maturing 2021. The 6 recovery rating remains unchanged and indicates an expectation of negligible (0% to 10%) recovery in the event of payment default.

“The outlook revision on Athlaction reflects our expectation that the company will continue its recent progress in reducing operating expenses and improving margins, leading to leverage in the mid-8x area for fiscal 2014, with continued improvement to 7x territory by the end of 2015,” said S&P credit analyst James Thomas in a news release.

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