S&P rates Service Corp. notes BB-

Standard & Poor's said it assigned its BB- debt rating to Service Corp. International's proposed $250 million senior unsecured notes due in 2016.

Ratings affirmed include the company's BB- senior unsecured debt and B subordinated debt.

The outlook remains stable.

S&P said the speculative-grade ratings on Service Corp. reflect the company's operating concentration in a competitive industry that features stable, though modest, growth prospects and a rising consumer preference for lower-cost services. The ratings further reflect the company's aggressive debt leverage.

These risks are partly offset by the company's large size, which affords it scale efficiencies and a revenue backlog, the agency said. Service Corp. has further benefited from initiatives to strengthen its sales mix and an improving balance sheet.

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