S&P gives Limited Brands notes BB

Standard & Poor's said it assigned a BB rating to Limited Brands' proposed offering of $500 million senior notes due 2019.

The notes will be issued under rule 144A with registration rights, the agency said, adding that proceeds will be used to repay existing debt and for general corporate purposes.

In addition, the agency said it placed the company's $2.15 billion BB rated unsecured notes on Creditwatch with negative implications.

Due to the subsidiary guarantees, the proposed $500 million of senior notes ranks senior to the company's unsecured notes, the agency said, adding that as a result, if the company were to use proceeds from the notes to repurchase a portion unsecured notes, the agency said it would revise the recovery ratings on the company's unsecured notes to five from 4 and would lower the rating on the notes to BB- from BB.

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