S&P ups Coinmach Service

Standard & Poor's said it raised its corporate credit rating on Coinmach Service Corp. to B- from CCC, along with its senior secured bank debt to B from CCC+. The debt consists of a $50 million revolving credit facility due 2013, a $50 million delay draw term loan due 2014 and a $725 million term loan due 2014. The recovery rating remains 2, indicating an expectation of 70%-90% recovery for lenders in the event of a default.

The outlook is stable.

The upgrades reflect a belief that liquidity has improved following the exchange of the company's remaining outstanding subordinated notes due 2015 for payment-in-kind preferred securities, S&P said.

Still, leverage remains high and the agency said it believes that beyond 2012, the company will again need to address the cash interest burden associated with its highly leveraged capital structure.

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