S&P rates High Liner loan B+

Standard & Poor's said it affirmed a B+ long-term corporate credit rating on High Liner Foods Inc.

The agency also said it assigned a B+ rating and 4 recovery rating to High Liner's proposed $300 million senior secured term loan B due 2021.

The 4 recovery rating indicates 30% to 50% expected default recovery.

S&P said it does not rate the company's $180 million senior secured asset-based loan facility due 2016, which is expected to be extended to 2019 in conjunction with the term loan refinancing.

The outlook is stable.

The proceeds of the new term loan will refinance existing debt, namely the $250 million term loan and the repayment of a portion of the $180 million asset-based loan at better pricing and with extended maturities, the agency said.

The ratings reflect the company's weak business risk profile and significant financial risk profile, S&P said.

The company has a narrow product portfolio, potential for performance volatility and customer concentration, the agency said.

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

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