S&P rates Merisant B-, loan B

Standard & Poor's said it assigned a B- corporate credit rating to Merisant Co., along with a B rating to its $141.9 million senior secured term loan with about $109 million outstanding.

The agency also assigned a 2 recovery rating, indicating 70% to 90% expected recovery in a default.

The outlook is stable.

S&P said the company has a vulnerable business risk profile and a highly leveraged financial profile, reflecting that the company participates in an intensely competitive industry and has a narrow product focus and moderate operating scale.

The agency said it believes that Merisant will remain challenged to substantially increase its revenues and expand its market share positions because it competes with much larger industry participants with greater financial resources and scale.

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