S&P rates American Safety loans B, CCC+

Standard & Poor's said it affirmed its B corporate credit rating on American Safety Razor Co.

In addition, a B rating and 3 recovery rating were assigned to the company's planned $225 million first priority lien bank facility and a CCC+ rating and 5 recovery rating were assigned to the company's planned $87.5 million second priority lien bank facility.

The outlook is stable.

Proceeds from the new bank facility will be used to pay a dividend to all of its existing shareholders, including its majority shareholder J.W. Childs Associates LP, and refinance its existing bank facility.

S&P said the ratings on American Safety Razor reflect the company's high debt leverage and small size in a sector dominated by companies with substantially greater financial resources. The company maintains good market position as a private-label manufacturer and marketer of razors and blades.

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