S&P rates Ethan Allen loan BB+, view to positive

Standard & Poor’s said it revised the outlook on Ethan Allen Interiors Inc. to positive from stable and affirmed its BB- corporate credit rating.

The agency also said it assigned a BB+ rating and 1 recovery rating to its subsidiary Ethan Allen Global Inc.’s $150 million senior secured credit facility, which consists of a $100 million revolver and a committed $50 million delayed draw term loan.

The 1 recovery rating reflects 90% to 100% expected default recovery.

Ethan Allen’s financial performance continues to improve, resulting in stronger credit protection measures, S&P said.

The credit measures could further improve from potential debt reduction as the company addresses its October 2015 note maturity, the agency said.

The company’s improved operating performance and credit measures reflect the U.S. economic recovery, S&P added, and company’s past restructuring efforts and new product introductions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.