S&P affirms Sun Products

Standard & Poor's said it affirmed the B- corporate credit rating on the Sun Products Corp.

The agency also said it lowered the rating on the company's first-lien senior secured credit facilities to B from B+ and revised the recovery rating to 2, indicating 70% to 90% recovery in a default, from 1.

S&P also said it affirmed the CCC rating on the company's senior secured second-lien term loan facility. The recovery rating on this debt remains 6, indicating 0% to 10% expected recovery in a default.

The outlook is negative.

The ratings reflect a view that recovery prospects will be weaker for first-lien secured lenders in a default, based on a lower enterprise value under the simulated default scenario, S&P said.

The reduced valuation reflects the company's ongoing declines in profitability declines in the business, the agency said.

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