S&P gives Service Corp. notes BB-

Standard & Poor's said it assigned its BB- rating to Service Corp. International's $250 million of proposed new senior unsecured notes due in 2014 and $250 million due in 2018.

At the same time, S&P said it lowered the rating on Service Corp.'s existing senior unsecured notes to BB- from BB.

The rating on the unsecured notes is now one notch below the BB corporate credit rating on the company, the agency added, noting that the amount of priority debt is increasing with the previously mentioned transactions and includes bank debt, capitalized operating leases, and the upcoming new private notes.

The speculative-grade ratings on Service Corp. reflect the company's leading position in a competitive industry that is characterized by generally flat business trends with few near-term growth prospects and a rising consumer preference for lower-cost services, S&P said.

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