S&P puts Norcraft Holdings on positive watch

Standard & Poor's said it placed Norcraft Holdings LP's B- corporate credit rating on CreditWatch with positive implications.

The watch listing follows news that Norcraft plans to add an additional $60 million to its existing second-lien notes due 2015 to refinance its $53.7 million senior discount notes due 2012, plus transaction fees and expenses, S&P said.

Based on an initial analysis, the agency said it has determined that if the transaction is completed as currently proposed, it would raise the corporate credit rating to B from B- with a stable outlook.

The higher rating would reflect the fact that the company would not have any maturities until 2015, when its second-lien notes and asset-based lending facility mature, S&P said.

In resolving the CreditWatch listing, the agency said it will monitor Norcraft's progress in completing the proposed transaction, the agency said.

If the company successfully refinances its debt and extends maturities, S&P said it will likely raise the rating on the second-lien notes to a B from a B- and revise the existing recovery rating on the notes to 4 from 3.

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