S&P gives Armstrong World loan BB

Standard & Poor's said it assigned its BB bank loan rating to the proposed $1.1 billion senior secured bank facility of Armstrong World Industries Inc. (D).

At the same time, the agency said it assigned a 2 recovery rating, adding that the bank facility is comprised of a $300 million five-year revolving credit facility, a $300 million five-year delayed draw term loan A and a $500 million seven-year delayed-draw term loan B.

The agency added it expects to assign its BB corporate credit rating to the building products company when Armstrong and its major U.S. subsidiaries emerge from Chapter 11 bankruptcy protection.

The outlook is expected to be stable.

S&P said that the anticipated BB corporate credit rating on Armstrong reflects the company's leading positions in ceiling systems and vinyl and wood flooring, a fair balance between residential and commercial end markets and between new construction and remodeling activities and adequate liquidity upon emergence from bankruptcy.

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