S&P lowers AMF Bowling

Standard & Poor's said it lowered its corporate credit rating on AMF Bowling Worldwide Inc. to CCC from CCC+. The outlook is negative.

At the same time, the agency said it revised its recovery rating on AMF's first-lien senior secured credit facilities to 2, reflecting an expectation for substantial recovery for lenders in the event of a payment default, from 3. The issue-level rating on the first-lien senior secured credit facilities remains CCC+.

The agency said the upward revision to the recovery rating on the first-lien term loan reflects S&P's expectation for a smaller amount of first-lien debt outstanding at default than under previous analysis.

The agency said it also lowered its issue-level rating on AMF's second-lien senior secured credit facility to CC from CCC- and maintained the recovery rating of 6.

"The downgrade reflects the significant refinancing risk associated with near term debt maturities and our view that a restructuring of at least a portion of AMF's debt obligations is becoming more likely," said S&P credit analyst Michael Halchak.

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