S&P affirms Del Labs

Standard & Poor's said it affirmed its ratings on Del Laboratories Inc., including its B corporate credit rating, the B senior secured debt rating and the CCC+ senor subordinated debt rating.

The ratings were removed from CreditWatch where they had been placed on Aug. 18 with negative implications. The outlook is negative.

S&P said the ratings affirmation is based on S&P's expectations that the company's recent management changes and other initiatives will focus on achieving better operating efficiencies in the near to intermediate term.

According to S&P, the ratings reflect Del's high leverage as a result of its acquisition by Keslo & Co. in January 2005 and marginal liquidity due to the company's challenges in achieving planned operating initiatives. Additionally, despite the leading consumer brands in both nail care and oral analgesic, the company has a narrow product focus and limited geographic diversity.

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