S&P ups Stewart Enterprises

Standard & Poor's said it raised its rating on Stewart Enterprises Inc.'s unsecured debt to BB from BB- and removed it from CreditWatch with developing implications. This follows Service Corp. International's announcement that it will guarantee Stewart's $200 million senior notes.

As a result, S&P revised the recovery rating on Stewart's unsecured notes to 4, indicating average recovery in the event of a payment default, from 5. S&P said it anticipates the company will refinance the existing convertible notes with new debt issued by Service Corp.

"The ratings on Stewart reflects its existing 'fair' business risk profile supported its number two position as a U.S. deathcare provider in the highly fragmented, mature death care industry, with limited growth prospects," said credit analyst Tahira Wright in a news release.

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