S&P puts Directed Electronics on watch

Standard & Poor's said it placed its BB- corporate credit rating on Directed Electronics Inc. on CreditWatch with negative implications.

The agency said that the rating action follows the company's announcement that it intends to acquire Polk Audio Inc. for $136 million in cash.

When the transaction is completed, the agency said it expects to lower the company's corporate credit rating to B+ and assign a stable outlook.

In addition, S&P said it assigned its B+ senior secured bank loan rating and 3 recovery rating to DEI Sales Inc.'s, a direct subsidiary, proposed $407 million amended and restated senior secured credit facilities maturing in 2013, which includes a $100 million revolving credit facility that will be undrawn at close.

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