S&P ups KIK Custom Products

Standard & Poor's said it raised the long-term corporate credit rating on KIK Custom Products Inc. to B- from CCC+, along with its first-lien senior secured credit facilities comprising a $55 million revolving credit facility and a $410 million term loan to B- from CCC+.

The 3 recovery rating is unchanged, indicating 50% to 70% recovery in a default.

The agency also said it upgraded its $235 million second-lien senior secured term loan to CCC from CCC- with its recovery rating unchanged at 6, indicating 0% to 10% expected recovery in a default.

The outlook is stable.

The upgrade reflects the improvement in KIK's financial risk profile stemming from the company's better operating performance, liquidity and credit protection measures, S&P said.

The ratings also consider the company's highly leveraged capital structure, limited financial flexibility, customer concentration and its participation in the mature and highly competitive North American household products and personal care industries, the agency said.

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