S&P rates Audio Visual Services B, loans B, CCC+

Standard & Poor's said it assigned its B corporate credit rating and stable outlook to Audio Visual Services Corp.

At the same time, the agency said it assigned a bank loan rating of B, at the same level as the corporate credit rating on Audio Visual Services and recovery rating of 2 to the proposed $255 million first-lien credit facilities of subsidiary Audio Visual Services Group Inc.

The first-lien credit facilities consist of a $30 million revolving credit facility due 2013 and a $225 million term loan B due 2014, the agency said, noting that it also assigned a CCC+ bank loan rating, two notches lower than the corporate credit rating on Audio Visual Services and recovery rating of 5 to the company's proposed $60 million second-lien term loan due 2014.

Proceeds from the transaction will be used to fund Kelso & Co.'s acquisition of Audio Visual Services, the agency said.

According to S&P, the ratings on Audio Visual Services reflect cash flow concentration in a hotel meetings and conferences business dependent on cyclical business travel, high customer concentration, meaningful commissions paid to venue-hosting hotels and high debt leverage and weakened cash flow protection following the acquisition by Kelso.

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