Fitch assigns Protection One loan B+

Fitch Ratings said it assigned a B+ rating as well as a recovery rating of RR2 to Protection One Alarm Monitoring Inc.'s proposed add-on senior secured term loan of $66.8 million, increasing the total term loan to $300 million.

Due to this expected debt increase as well as lower recovery values for the secured bank debt, Fitch said it has downgraded the company's senior secured bank facility to B+/RR2 from BB-/RR1.

Fitch said it affirmed the company's issuer default rating of B- and the senior subordinated debt at CCC+/RR5.

The outlook is stable.

Fitch said rating concerns center on Protection One's continuous reduction in its customer base, necessary capital requirements to acquire customers and competition from larger, better capitalized companies.

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