S&P rates new Kroll convertibles B

Standard & Poor's said it assigned its B rating to Kroll Inc.'s $150 million convertible subordinated notes due 2014 and assigned its BB- corporate credit rating to the company.

The outlook is stable.

S&P said the ratings reflect the challenges inherent in managing the company's fast growth, its active acquisition orientation, and its lack of a recent track record with all acquisitions integrated.

Acquisitions have been financed with a balance of debt and equity. Pro forma debt to EBITDA of 2x and EBITDA coverage of gross interest expense at about 10x for the 12 months ended Sept. 30 are adequate for the rating.

S&P said the stable outlook incorporates S&P's expectation that the company will continue to make selective strategic and fill-in acquisitions. Near-term share repurchases beyond the $35 million authorization could result in an outlook revision to negative.

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