S&P ups Sunstate notes to BB

Standard & Poor's said it raised its secured debt rating on Sunstate Equipment Co. LLC's $170 million senior secured notes due 2016 to BB from B+.

The recovery rating on the notes was revised to 1 from 4.

S&P said the higher issue rating reflects improved recovery prospects stemming from the new security ranking of the notes.

The notes are now secured on a first-priority basis. This priority changed because Sunstate installed a new unsecured revolving credit facility that replaced and fully repaid the company's first-lien asset-based loan facilities that were previously senior to the notes.

Now the entire collateral value is fully available to the noteholders on a first-priority basis, the agency said.

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