S&P upgrades Vi-Jon

Standard & Poor's said it raised the corporate credit rating on Vi-Jon Inc. to B+ from B and its secured credit facilities to BB- from B, and revised the recovery rating to 2 from 3.

The outlook is stable.

The revision of the recovery rating reflects expectation that the company will continue to voluntarily repay debt above the required amortization with its moderate positive cash flow generation, according to the agency.

The BB rating reflects Vi-Jon's participation in the highly competitive personal care segment of the consumer products sector, moderate debt leverage and significant customer concentration, the agency noted.

The company remains vulnerable to aggressive advertising and promotional activities from larger branded companies, S&P said.

During the 12 months ended Oct. 3, total debt-to-EBITDA ratio was 2.6x.

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