Research Update: Orchard Supply Hardware LLC Assigned 'B' Corporate Credit Rating; Senior Secured Term Loan Also Rated 'B' Mar 11

Standard & Poors, March 2011

Abstract
Negative trends for U.S. hardware retailer Orchard Supply Hardware LLC due to weak housing markets and economic conditions in California are moderating. We expect declines in operating results will be limited in 2011. We are assigning a 'B' corporate credit rating to Orchard Supply Hardware LLC and a 'B' issue rating with a '4' recovery rating to its existing $174 million senior secured term loan due 2013. The stable outlook reflects our expectations that Orchard will maintain adequate cushion under the financial covenants and that credit measure will remain adequate for the rating despite some deterioration due to weak sales. On March 31, 2011, Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to San Jose, Calif.-based Orchard...

Companies mentioned in this report are: Orchard Supply Hardware LLC
Action: New Rating
Action: Outlook: Stable

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

Orchard Supply Hardware LLC

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