S&P affirms Champion

Standard & Poor's said it affirmed its B+ corporate credit ratings on Champion Enterprises Inc. and its subsidiary, Champion Home Builders Co.

At the same time, all other Champion-related ratings were affirmed, including the recovery ratings of 4 on the Champion's senior notes and the subsidiary's senior secured credit facility, the agency noted.

The outlook is stable.

S&P said that the ratings reflect softening demand for Champion's factory-built housing products as the general decline in the nation's housing markets is negatively affecting modular home sales while the persistent dearth of consumer financing continues to sharply curtail manufactured home sales.

These troubling macro trends will pressure near-term earnings and have caused the company to seek temporary relief from leverage covenants governing its secured credit facility, S&P noted.

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