S&P rates USG loan BB+

Standard & Poor's said it assigned its BB+ bank loan rating to the proposed $2.8 billion senior unsecured bank facility of USG Corp. (D).

The bank facility is comprised of a $650 million revolving credit facility due in 2011, a $1.0 billion delayed draw term loan due in 2011 and a $1.15 billion delayed-draw term loan due in 2009, the agency said.

The agency added that it expects to assign its BB+ corporate credit rating to USG when the company and its major U.S. subsidiaries emerge from Chapter 11 bankruptcy proceedings in mid-2006, noting that it expects the outlook to be stable.

The anticipated BB+ corporate credit rating on USG reflects the company's leading position in the U.S. gypsum wallboard and ceiling system markets, competitive cost position, flexible capital spending needs and moderate financial policies, S&P said, noting that the ratings also reflect cyclical demand for the company's products.

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