S&P affirms Steinway ratings

Standard & Poor's said it affirmed its corporate credit rating on Steinway Musical Instruments Inc. at B. The outlook is stable.

The company intends to refinance the outstanding balance on the $110 million second-lien loan with the existing $200 million first-lien term loan due 2019 in addition to about $11 million of cash.

S&P affirmed the issue-level rating on the pro forma $305 million first-lien term loan at B. However, S&P revised the recovery rating on the term loan to 4 from 3, reflecting expectations for average (30% to 50%) recovery in the event of payment default.

The company also has a $75 million asset-based lending facility due 2018 (unrated).

The ratings on Steinway reflect S&P's view of its "highly leveraged" financial risk profile and "weak" business risk profile.

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