S&P rates Alliant loan 2, ups loan to B

Standard & Poor's said it assigned its recovery rating of 2 to Alliant Holdings Inc.'s (B-/stable) $385 million senior secured term loan B due 2014 and its $60 million revolving credit facility due 2013.

The 2 recovery rating indicates that the lenders can expect substantial recovery of principal in the event of payment default, the agency noted.

As a result of this rating action, S&P said it also raised the issue rating on these two facilities to B from B-, one notch higher than the counterparty credit rating.

These rating actions reflect S&P's review of a simulated default scenario that contemplates a payment default resulting from financial pressures due to Alliant's increased financial leverage and weakened fixed-charge coverage following its acquisition by Blackstone Group.

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