S&P rates K2 notes BB

Standard & Poor's assigned a BB corporate credit rating to sporting goods manufacturer K2 Inc. and assigned a BB senior unsecured debt rating to the company's planned $150 million senior unsecured note offering due in 2014.

The outlook is stable.

S&P said K2's ratings reflect its participation in the highly competitive and mature sporting goods manufacturing industry and an aggressive acquisition strategy. These risks are mitigated somewhat by the company's leading market positions in the industry and its continued use of equity to help fund its growth strategy.

Pro forma total debt to EBITDA is 3x. K2 continues to use equity as a significant component in funding its growth, as demonstrated by this transaction. As a result, future growth is expected to be managed so that the company can maintain total debt to EBITDA at or below 3x.

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