S&P rates Werner loan CCC, ups view

Standard & Poor's said it affirmed its CCC+ corporate credit rating on Werner Holding Co. (DE) Inc. and revised its outlook to stable from negative following the company's announcement that it is refinancing a portion of its existing credit facility with a new $100 million senior secured second-lien term loan.

At the same time, S&P assigned its CCC bank loan rating and a recovery rating of 3 to Werner's proposed $100 million senior secured second-lien term loan due 2009 (or 2007 if the company's subordinated debt is not refinanced by May 2007).

S&P also raised its bank loan rating on the company's senior secured credit facility (originally $230 million, currently $205 million, and pro forma for the refinancing $140 million) to B- from CCC+ and assigned a recovery rating of 1 to this facility.

The ratings on privately owned Werner reflect its significant customer concentration, the competitive environment in its niche and cyclical markets, a very aggressive financial profile, and interest-rate and refinancing risk, the agency said.

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