S&P affirms Directed Electronics

Standard & Poor's said it affirmed its B+ corporate credit rating on Directed Electronics Inc., following the company's announcement that it intends to make an initial public offering of shares of common stock in the company.

At the same time, S&P said it affirmed its B+ bank loan and its recovery rating of 3 on Directed Electronics' first-priority senior secured credit facilities.

S&P said its rating affirmation assumes that proceeds from this stock offering will be used to prepay the company's unrated $37 million senior subordinated notes and its unrated $37 million junior subordinated notes.

The agency noted Directed Electronics' position as the largest participant in the consumer auto security market, strong brand names, good customer diversity and extensive distribution network.

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