S&P rates Cinram loan BB

Standard & Poor's assigned its BB bank loan rating and 4 recovery rating to Cinram International Inc.'s $668 million secured tranche D term loan due 2009 and affirmed its BB long-term corporate credit rating on Cinram. The outlook is stable.

Proceeds from the new tranche D term loan were used to repay most of Cinram's previous tranche B term loan and a portion of its tranche C loan.

"The ratings on Cinram are based on the commodity-like nature of the media replication industry, which is also subject to shifts in technology and availability of hit new releases," said S&P credit analyst Lori Harris. "Although hit new releases are a significant revenue growth driver, the availability of previously released titles in DVD format is also an important component of the company's revenue base."

S&P said the ratings also reflect the risk of customer and product concentration. Partially offsetting these factors are Cinram's long-term customer contracts, management's proven track record in adapting to changing technologies and achieving solid operating margins and very good industry growth prospects in the medium term.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.