S&P ups Tandus recovery to 3

Standard & Poor's said it revised the recovery rating on Tandus Flooring Inc.'s senior secured term loan due 2014 to 3 from 4, indicating 50% to 70% expected recovery in a default.

The rating remains at B, the same as the corporate credit rating.

The revision follows about $30 million of voluntary prepayments on the company's term loan, which increases the recovery prospects for the remaining secured debt, S&P said.

The ratings reflect the company's relatively small size, participation in the highly competitive and cyclical carpet industry and exposure to volatile raw material costs, the agency said.

These are partially offset by the company's niche market position in the domestic commercial carpet market and its diversified customer base, S&P said.

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