S&P rates Levitz notes B-, CCC

Standard & Poor's said it assigned its B- rating to Levitz Home Furnishings Inc.'s new $100 million class A senior secured notes due 2011 and assigned a CCC rating to Levitz' $30 million class B notes due 2011.

The B- corporate credit rating on the company was affirmed. The outlook is positive.

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

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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