S&P boosts Otis Spunkmeyer view to positive

Standard & Poor's said it revised its outlook on Otis Spunkmeyer Inc. to positive from stable.

Existing ratings on the company, including the B+ corporate credit rating, were affirmed, S&P noted, adding that the outlook revision follows the company's S-1 filing with the SEC for an IPO of up to $230 million of its common stock and reflects the potential for lower debt leverage if the IPO is successful.

The ratings reflect Otis Spunkmeyer's high debt leverage, its narrow business focus and the highly competitive industry in which it competes, the agency added.

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