S&P: High Liner to positive

Standard & Poor's said it revised the outlook on High Liner Foods Inc. to positive from stable.

The revised outlook reflects High Liner's improved operating performance and credit protection measures, which is expected to continue in 2013, said Lori Harris, an S&P analyst.

The company's adjusted debt-to-EBITDA ratio of 4x for the last 12 months ended Sept. 29, is down from about 5x on a pro forma basis a year ago, the agency said.

In addition, the company completed the integration of Icelandic USA in November 2012, which will positively affect High Liner's operating margin in 2013 because of synergistic savings, S&P said.

S&P also affirmed the company's B long-term corporate credit rating, as well as its B issue-level on the company's $250 million senior secured term loan due 2017.

The 4 recovery rating on the debt is unchanged.

The ratings reflect the company's weak business risk profile and aggressive financial risk profile, the agency said. Those assessments are based on its narrow product portfolio and customer concentration, S&P said.

Partially offsetting these factors is the company's solid market position in its niche as the leading supplier of value-added frozen seafood in North America, the agency said.

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