S&P rates LJVH B, loans BB-, CCC+

Standard & Poor's said it assigned its B long-term corporate credit rating to LJVH Holdings Inc., which is the parent of operating entity Van Houtte Inc.

At the same time, S&P said it assigned its BB- senior secured bank loan rating, with a recovery rating of 1, to the company's planned $300 million first-lien bank facility.

The 1 recovery rating indicates an expectation of very high recovery of principal in the event of a

payment default, the agency said, adding that it also assigned a CCC+ senior secured bank loan rating, with a recovery rating of 6, to Van Houtte's planned $125 million second-lien bank facility.

The outlook is stable.

According to S&P, the ratings on LJVH Holdings reflect its highly leveraged financial risk profile, narrow product portfolio, susceptibility to coffee bean price fluctuations and relatively small presence in the highly competitive U.S. coffee market.

These factors are partially offset by Van Houtte's solid brand equity, operating margin and market position in gourmet coffee distribution in Canada, S&P said.

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