S&P upgrades Steinway

Standard & Poor's said it raised its corporate credit rating on Steinway Musical Instruments Inc. to B+ from B.

The outlook is stable.

At the same time, the agency raised the issue-level rating on the 7% senior unsecured notes due 2014 to BB- from B+. The recovery rating on this debt is 2, indicating an expectation for substantial (70% to 90%) recovery in the event of a payment default.

"The upgrade reflects Steinway's decision to end its strategic evaluation process without selling any (or all) of the company," said S&P credit analyst Stephanie Harter in a news release. "In addition, we believe credit metrics have improved following a substantial debt prepayment in 2011."

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