S&P rates Alliance Laundry

Standard & Poor's said it affirmed its B corporate credit rating on commercial laundry equipment manufacturer Alliance Laundry Systems LLC.

At the same time, S&P assigned its B senior secured debt rating and a recovery rating of 2 to Alliance Laundry Systems' proposed $160 million senior secured bank facilities.

The company's existing B senior secured debt rating as well as its CCC+ subordinated debt rating will be withdrawn upon completion of the proposed transaction.

In addition, S&P assigned its B corporate credit rating to Alliance Laundry Holdings Inc., the parent company of Alliance Laundry Systems. S&P also assigned its CCC subordinated debt rating to Alliance Laundry's $152.4 million subordinated notes due 2019, of which $136.2 million will be issued in connection with the holding company's IPO of income deposit securities.

The outlook is negative for both companies.

S&P said the ratings on Alliance Laundry reflect its high debt leverage and thin credit protection measures, factors partially mitigated by the company's solid position and high barriers to entry in the mature commercial laundry equipment market.

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