S&P rates K&F Parent PIK notes B-

Standard & Poor's said it assigned its B- rating to K&F Parent Inc.'s $55 million senior payment-in-kind notes due 2015 and its B+ corporate credit rating to the company.

At the same time, S&P affirmed its ratings, including the B+ corporate credit rating, on K&F Industries Inc., an indirect wholly owned subsidiary of K&F Parent, which conducts all of its business through K&F Industries. The outlook is stable.

S&P also affirmed K&F Industries' B+ senior secured bank loan rating and B- subordinated debt rating.

Proceeds of the notes will be used to redeem a portion of senior PIK preferred stock.

S&P said the ratings on K&F Industries reflect a heavy debt burden, a very aggressive financial policy, modest scale of operations (annual revenues about $350 million) and some cyclicality.

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