S&P rates Coinmach loans B

Standard & Poor's said it assigned its B rating with a recovery rating of 2 to Coinmach Corp.'s proposed $645 million senior secured credit facilities and affirmed the company's B corporate credit rating and CCC+ senior secured debt rating.

The outlook has been revised to stable from negative.

Proceeds from the credit facilities will be used to refinance the company's existing senior secured credit facilities and its outstanding $324.5 million senior unsecured notes due 2010, which are callable Feb. 1.

The outlook revision reflects Coinmach's improved financial flexibility following the refinancing because it will extend the company's debt maturities, lower annual debt amortization requirements and interest expense and provide more cushion under its bank financial covenants, the agency said.

The ratings reflect the company's highly leveraged financial profile and its significant cash flow requirements to fund capital expenditures, interest, and expected dividends, S&P said.

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