S&P assigns B rating to School Specialty loan

Standard & Poor's said it assigned its preliminary B corporate credit rating to School Specialty Inc. following the confirmation of a Chapter 11 plan of reorganization.

At the same time, S&P assigned a preliminary B issue-level rating to the company's proposed $145 million term loan facility due 2019, with a preliminary 3 recovery rating, indicating an expectation of meaningful (50% to 70%) recovery for lenders under a simulated default scenario.

The outlook is stable.

The stable outlook reflects S&P's expectation that credit protection measures will improve over the next year as the company emerges from bankruptcy protection with a stronger balance sheet and a more favorable end market environment, the agency said.

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