S&P affirms KIK Custom

Standard & Poor's said it affirmed the B- long-term corporate credit rating on KIK Custom Products Inc.

The agency also said it assigned a B- rating to the company's new $80 million first-lien senior secured term loan due 2014 with a 3 recovery rating, indicating 50% to 70% recovery in a default.

The proceeds were used to finance the acquisition of Chem Lab Products Inc. and for general corporate purposes.

The ratings reflect a view of the company's aggressive financial policy, including its highly leveraged capital structure, customer concentration and participation in the mature and highly competitive North American household products and personal care industries, S&P said.

These risks are mitigated somewhat by KIK's position as the largest contract manufacturer of consumer products and the second-largest manufacturer of bleach in North America, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.