S&P boosts Del

Standard & Poor's said it raised its corporate credit rating on Del Laboratories Inc. to B- from CCC+.

At the same time, the agency said it raised the rating on the company's senior secured floating-rate debt to B from B-, the recovery rating, which was not on CreditWatch, was affirmed at 2, indicating the expectation for substantial recovery of principal in the event of a payment default.

S&P noted that it also raised ratings on the company's senior subordinated notes to CCC from CCC- while the ratings were removed from CreditWatch with developing implications, where they were placed on June 26, as a result of the trustees' notification that a default had occurred under the indentures for the company's $185 million senior secured floating-rate notes due 2011 and its $175 million 8% senior subordinated notes due 2012.

The outlook is stable.

According to the agency, the ratings reflect Del's highly leveraged financial risk profile, somewhat narrow product focus and highly competitive operating environment in the segments in which it competes while these factors are partly offset by its leading consumer brands in both nail care and oral analgesics.

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