S&P: Lorillard notes BBB-

Standard & Poor's said it assigned a preliminary BBB- unsecured debt rating to Lorillard Inc.'s most recent Rule 415 shelf registration dated June 13, 2012.

The agency also said it assigned a BBB- senior unsecured debt rating to Lorillard Tobacco Co.'s proposed $500 million senior unsecured notes due 2017.

Lorillard Tobacco, a wholly owned and primary subsidiary of Lorillard, issued the notes under the company's most recent Rule 415 shelf registration and Lorillard fully and unconditionally guarantees the notes.

The proceeds will be used to repurchase, redemption or retirement of securities, acquisitions, working capital requirements and capital expenditures.

The company will continue to maintain key credit metrics consistent with or slightly better than the indicative ratios for an intermediate financial risk profile, S&P said.

This includes maintaining lease- and pension-adjusted total debt-to-EBITDA of 2x or below, the agency said.

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