Quality Home Brands Holdings LLC #B-# Rating Is Term Loan Recovery Rating Is Revised To #3#

Stocks and Financial Services Press Releases Thursday February 25, 2016 09:12
SAN FRANCISCO--25 Feb--Standard & Poor's
SAN FRANCISCO (Standard & Poor's) Feb. 24, 2016--Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating on Quality Home Brands Holdings LLC (QHB). The outlook is stable.

At the same time, we revised our recovery rating on QHB's $160 million first-lien term loan due 2018 to '3' from '4', indicating our anticipation of meaningful (50% to 70%; in the lower half of the range) recovery in the event of a payment default. This is a result of our expectations of continued EBITDA growth stemming from favorable underlying industry trends, which supports a higher valuation. We affirmed the 'B-' issue-level rating on the $160 million first-lien due 2018 and 'CCC' issue-level rating on the company's $70 million senior second-lien term loan due 2019. The recovery rating on the $70 million senior second-lien is '6', indicating our anticipation of negligible (0% to 10%) recovery in the event of a payment default.

"The corporate credit rating on QHB reflects its narrow product focus and high leverage," said Standard & Poor's credit analyst Beverly Correa.
QHB is a niche domestic supplier of residential and commercial lighting products and ceiling fans distributed through mass market retailers, electrical distributors, homebuilders, and specialty showrooms.

The outlook reflects our expectation that QHB will continue to gradually improve profitability and cash flow as it benefits from a strengthening U.S. housing market while maintaining at least 15% EBITDA cushion on its financial maintenance covenants over the next 12 months.


Latest Press Release

USChina Trade Jitters Drive Spike in Thailand#s Residence Program Applications

Latest data suggests that Thailand is set to become an unintended beneficiary of the current turbulent trade relations between the world's two most powerful economies. As United States President Donald Trump and his Chinese counterpart Xi Jinping...

KBank debuts KBank Digital Academy Tech learning space for enhanced digital experiences

In the fast-paced digital era, KASIKORNBANK (KBank) aims to be the number-one digital banking provider in a bid to meet customers' needs and bring them greater value. To this end, employees hold the key in creating innovations. Recently, KBank...

Photo Release: KTC - UnionPay credit card provides cardmembers privileges to dine deliciously with even more value.

Ms. Sudchavee Banjobdee, Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited, jointly with Ms. Apinya Rojanavorakul, Business Management Manager, UnionPay International, provide KTC UnionPay credit cardmembers special...

Societe Generale Opts for Axefinance#s ACP Solution for Multi-entity Retail Lending Digitalization

Societe Generale decided to embark on a retail lending transformation journey across multiple African affiliates through its SG ABS entity. With the aim of harmonizing, consolidating and improving their existing credit processes, this project is a key...

7 Thai-listed firms scored DJSIs industry leaders

The Stock Exchange of Thailand (SET) has announced that seven SET-listed companies have been named the Industry Leaders in the 2019 Dow Jones Sustainability Indices (DJSI), a globally recognized sustainability benchmark. A total of 20 SET-listed firms...

Related Topics