S&P affirms Rock-Tenn loan

Standard & Poor's said it affirmed its bank loan rating and revised its recovery rating on the $700 million senior secured credit facilities of Rock-Tenn Co. (BB/stable).

The agency said that the bank loan rating was affirmed at BB, while the recovery rating was revised to 2 indicating the expectation of substantial recovery in the event of a payment default, from 4.

"The change in recovery rating follows our reassessment of the collateral and value available to bank lenders in a default scenario," said S&P credit analyst Andy Sookram.

The change also reflects a reduction in the outstanding term loan balance, to $231 million as of March 31 from $250 million initially, the agency noted.

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