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Published on 5/3/2010 in the Prospect News Bank Loan Daily, Prospect News Distressed Debt Daily and Prospect News High Yield Daily.

S&P rates Atrium loan B

Standard & Poor's said it raised its corporate credit rating on Atrium Cos. Inc. to B from D and assigned a B rating to the company's senior secured term loan. The recovery rating is 3, indicating an expectation of 50% to 70% recovery in the event of a default.

The outlook is stable.

The ratings reflect Atrium's significantly reduced debt levels following its Chapter 11 emergence and an assumption of a modest improvement in residential end markets in 2010, S&P said.

The company's operating conditions are likely to improve, resulting in credit measures considered to be in line with the current rating, the agency said. The company projects that its adjusted debt-to-EBITDA ratio for 2010 will be between 4x and 4.5x, S&P said.

The ratings also consider a vulnerable business risk profile given Atrium's limited market share in the highly competitive windows and doors industry, the agency said.


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