S&P ups Universal Computer, cuts loans

Standard & Poor's said it raised its corporate credit rating on Universal Computer Systems Holding Inc. (doing business as Reynolds) to B+ from B.

The outlook is stable.

At the same time, the agency lowered its ratings on the company's existing first-lien term loans to BB from BBB-. It previously anticipated that the facilities would be repaid at the closing of the recap financing, but they will remain outstanding instead. The recovery rating remains 1, indicating an expectation for a very high (90%-100%) recovery of principal in the event of payment default.

S&P is withdrawing ratings on the previously proposed $25 million senior secured revolving credit facility, $550 million first-lien term loan A and $1.75 billion first-lien term loan B. It is also withdrawing the ratings on the previously proposed $1.1 billion second-lien term loan.

"The ratings reflect the company's improved near-term financial profile following the recap withdrawal," S&P credit analyst Katarzyna Nolan said in a news release.

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