S&P rates Sally Holdings B, loans BB-, B+, notes CCC+

Standard & Poor's said it assigned its B corporate credit rating to Sally Holdings LLC.

The outlook is positive.

At the same time, the agency said it assigned a BB- rating to the company's planned $400 million asset-based revolving credit facility due 2011 and a B+ rating to the company's $300 million term loan A due 2012 and $770 million term loan B due 2013, both with 1 recovery ratings.

S&P said it also rated the company's planned $430 million senior unsecured notes and $280 million senior subordinated notes CCC+, two notches lower than the corporate credit rating.

The ratings on Sally Holdings reflect its highly leveraged pro forma capital structure, thin cash flow protection measures and participation in the competitive professional beauty supply industry, the agency noted.

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