S&P ups Container Store, loan to B

Standard & Poor's said it raised its corporate credit rating on Container Store Inc. to B from B-.

The agency also assigned a B corporate credit rating to Container Store Group Inc., the parent of Container Store Inc., as it analyzes the company on a consolidated basis.

The outlooks are stable.

Concurrently, S&P raised its issue-level rating to the company's $362.3 million term loan B to B from B- and revised the recovery rating on this debt to 3 from 4.

"Our rating action follows The Container Store's (TCS) completion of its initial public offering on Oct. 31, 2013. The company used proceeds from equity issuance to redeem about $210 million of preferred stock," S&P credit analyst Mariola Borysiak said in a news release.

"In addition, the company used incremental $31.5 million from exercise of greenshoe option to pay down a portion of its term loan B. In conjunction with the offering, all remaining preferred shares were exchanged into common shares and retired."

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