S&P rates ECI loans B+

Standard & Poor's said it assigned its B+ corporate credit ratings to Electrical Components International Inc. (ECI) and its parent company, ECI Holdco, Inc.

The outlook is stable.

At the same time, the agency assigned its B+ issue rating to ECI's proposed $310 million senior secured credit facilities. The recovery rating is 3, indicating an expectation for meaningful recovery (50%-70%) in a payment default scenario.

The credit facilities include a $50 million revolver, which will be undrawn at closing, and a $260 million term loan.

Loan proceeds from the new bank debt, along with equity contributions from the new sponsor, will be used to fund the acquisition.

ECI is the borrower of the credit facilities and ECI Holdco is the guarantor.

"The rating reflects our assessment of ECI's business risk profile as 'weak' and its financial risk profile as 'aggressive,'" S&P credit analyst John Sico said in a news release.

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