Moody's affirms True Temper

Moody's Investors Service said it affirmed True Temper Sports Inc.'s B2 corporate family rating, Caa1 senior subordinated notes and B2 amended and restated credit agreement, which allows the company to issue about $15 million of additional term loans. The outlook is stable.

The ratings affirmation, despite the potential for $15 million of additional debt, recognizes the $12 million of term loan debt reduction that occurred in 2005, combined with Moody's expectation that the company should sustain favorable levels of operating performance based on new product launches in the second half of the year as well as relatively lean distribution channels.

Moody's noted that the amended and restated credit agreement also resets financial covenant levels and permits greater levels of capital spending and flexibility for future acquisitions.

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