S&P rates Levitz notes B-

Standard & Poor's said it assigned its B- rating to Levitz Home Furnishings Inc.'s proposed $130 million senior secured note offering due 2011.

Proceeds from the offering will be used to repay the company's existing debt.

At the same time, S&P assigned its B- corporate credit rating to the company. The outlook is positive.

S&P said the ratings reflect Levitz' participation in the cyclical and highly competitive and fragmented retail furniture industry, its regional concentration, history of inefficient operations, and very highly leveraged capital structure. These weaknesses are somewhat offset by the company's established position and recognized brand in the markets in which it competes.

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