Moody's: Merisant loan B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B3 probability of default rating to Merisant Co. and a B2 (LGD 3, 34%) rating to its $109 million senior secured term loan due 2014.

The facility was executed in conjunction with Merisant's emergence from Chapter 11 bankruptcy on Jan. 8, 2010.

The outlook is stable.

The ratings reflect Merisant's strong brand recognition in the artificial sweetener market, the global diversification of its sales, solid margins and meaningful market share, Moody's said.

But the ongoing commoditization of artificial sweetener products and increased participation by private-label competitors are expected to drive competition and weigh on revenues over the intermediate term following multiple years of revenue decline, the agency said.

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