S&P rates Key Safety loans B+

Standard & Poor's said it assigned its B+ corporate credit rating to KSS Holdings Inc., parent of Key Safety Systems Inc. The outlook is stable.

S&P also assigned its B+ debt issue-level ratings to Key Safety Systems' new $470 million senior secured credit facilities, with a recovery rating of 3. The 3 recovery rating indicates an expectation for meaningful recovery (50% to 70%) in the event of payment default.

The credit facilities will consist of a $75 million revolver due in October 2017 and a $395 million first-lien term loan B due in April 2018.

"The ratings on KSS reflect the company's 'aggressive' financial risk profile, including adjusted debt to total capital estimated to decline to about 57% in 2013, and its 'weak' business risk profile, which is based on its participation in the volatile and competitive global auto supplier industry," said S&P credit analyst Nancy Messer in a news release.

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