S&P: Griffon loan BB+, notes BB-

Standard & Poor's said it assigned a BB- corporate credit rating to Griffon Corp. and a BB+ rating to Griffon's $200 million revolving credit facility due 2016. The agency assigned a 1 recovery rating to this facility, indicating 90% to 100% recovery in a default.

S&P also assigned a BB- rating to the company's $550 million senior notes due 2018 with a 3 recovery rating, indicating 50% to 70% recovery in a default.

The outlook is stable.

The proceeds will be used to repay outstanding bank debt at its Clopay Ames subsidiary and to replace existing revolving credit facilities at both Clopay Ames and Telephonics, S&P said.

The ratings reflect its fair business risk profile and aggressive financial risk profile, S&P said.

The company has sizable customer concentrations in each of its business segments and exposure to fluctuation in the construction industry through its building products business, the agency said.

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