S&P rates North American Breweries B

Standard & Poor's said it assigned a B corporate credit rating to North American Breweries Holdings LLC following its merger with and into CCR Breweries Inc.

The outlook is stable.

The agency also said it affirmed the B+ rating on North American Breweries' $175 million senior secured term loan due 2018. The recovery rating remains 2, indicating 70% to 90% expected default recovery.

The proceeds of the term loan, along with about $200 million equity contribution from CCR, partially refinanced North American Breweries' existing debt and funded the acquisition.

The corporate credit rating reflects the company's vulnerable business risk profile and highly leveraged financial risk profile, the agency said.

Key credit factors include the company's relatively small size and narrow focus within the mature and highly competitive U.S. beer industry, S&P said, and exposure to volatile commodity costs.

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