S&P rates GP notes B+

Standard & Poor's said it assigned a B+ rating to GP Investments Ltd.'s (B+/stable) proposed additional issuance of perpetual bonds, which have the same characteristics as the January 2007 notes, except for the pledge of the shares of GP Private Equity, Ltd., which were released in June.

Liquidity and leverage are potential risk factors because of private equity activity, according to S&P.

GP partly mitigated the liquidity risk by using a coupon-payment reserve to cover 18 months of interest on the perpetual notes, the agency said. GP also plans to keep minimum cash reserves to cover operating expenses during the pre-operating phase, S&P said.

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