S&P assigns Oneida B, loan B+

Standard & Poor's said it assigned its B corporate credit rating to Oneida Ltd.

The outlook is negative.

At the same time, S&P said it assigned its B+ senior secured bank loan and 2 recovery ratings to Oneida's planned $120 million term loan due 2014.

According to the agency, the company is also amending terms to its existing $80 million asset-based revolving credit facility that is unrated.

S&P noted that net proceeds from the proposed bank facility, along with about $5 million of cash, will be used to refinance $90 million of the company's debt outstanding and pay a $30 million dividend to its preferred shareholders, adding that the ratings reflect Oneida's high leverage, aggressive financial policy as demonstrated by three sizable acquisitions made in 2000 and the current dividend payout, weak operating history and vulnerability to change in consumer preferences and decline in foodservice and/or leisure industries.

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