Moody's ups Sealy Mattress

Moody's Investors Service said it upgraded Sealy Mattress Co.'s senior implied and senior secured ratings to B1 from B2.

Moody's upgraded Sealy's $125 million senior secured revolving credit facility due 2010 and $560 million senior secured term loan B due 2012 to B1 from B2, $100 million senior unsecured term loan due 2013 to B2 from B3, $390 million senior subordinated notes due 2014 to B3 from Caa1 and senior unsecured issuer rating to B2 from B3.

At the same time, Moody's upgraded Sealy's unsecured term loan and unsecured issuer ratings to B2 from B3. Moody's also upgraded the senior subordinated notes rating to B3 from Caa1.

The outlook was changed from positive to stable.

Moody's said the upgrade reflect Sealy's strong operating performance, successful major new product launches in both its Sealy Posturepedic and Stearns & Foster lines and the current industry forecast of continued strong demand growth offset by high, albeit improving, leverage.

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