S&P rates Leslie's Poolmart loans BB-

Standard & Poor's said it assigned a BB- rating to Leslie's Poolmart Inc.'s proposed $225 million term loan B due in 2017 with 1 recovery rating indicating expectation for 90% to 100% recovery.

S&P affirmed the B corporate credit rating.

The outlook is stable

Proceeds will be used to refinance $164 million of its 7¾% senior notes and repurchase shares from a minority shareholder.

"The rating on Leslie's reflects our expectation that it will enhance credit metrics over time with better profitability as a result of new store growth and stable performance at its existing store base," S&P analyst Charles Pinson-Rose said in a statement.

Credit metrics will weaken in the near term due to the addition of debt and financial risk profile will remain highly leveraged, despite expected profitability increases, the agency noted.

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