S&P affirms Amscan, rates loan BB-, B

Standard & Poor's said it affirmed all of its ratings on Amscan Holdings Inc., including the B corporate credit rating.

At the same time, S&P said it assigned its BB- bank loan rating and 1 recovery rating to Amscan's proposed $150 million asset-based revolving credit facility, indicating the expectation of full recovery of principal in the event of a payment default.

In addition, the agency said it assigned its B bank loan rating and 3 recovery rating to the company's proposed $425 million senior secured term loan B facility, indicating the expectation of meaningful recovery of principal in the event of a payment default.

The outlook is negative.

S&P said that proceeds of the transaction will be used to refinance existing bank debt and to pay fees and expenses and the ratings on Amscan reflect its high debt leverage, narrow business focus and participation in the highly competitive and fragmented party goods industry.

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