S&P upgrades Merisant

Standard & Poor's said it raised the corporate credit rating on Merisant Co. to B from B- following the company's continued debt reduction, maintenance of adequate liquidity and improved top line growth.

Merisant reduced its term loan by about $27 million to $88 million at Dec. 31, 2011 from $115 million in December 2010, S&P said.

The agency also said it raised the issue-level rating on the company's senior secured credit facility to BB- from B to reflect the higher corporate credit rating and debt reduction.

The recovery rating was revised to 1 from 2, indicating 90% to 100% expected recovery in a default.

S&P said it anticipates that Merisant will maintain adjusted leverage below 4x, maintain adequate liquidity and continue to grow net sales while maintaining EBITDA margins near current levels.

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