S&P: Simmons remains on negative watch

Standard & Poor's said Tuesday that its BB- corporate credit and senior secured debt ratings on Simmons Co. remain on CreditWatch with negative implications, and the B subordinated debt rating also remains on CreditWatch.

The CreditWatch update follows financial sponsor Fenway Partners' announcement on Nov. 17 that it has signed a definitive agreement under which Thomas H. Lee Partners L.P., a Boston private equity firm, will acquire Simmons for $1.1 billion.

The CreditWatch listing continues to reflect S&P's expectation that under the new ownership, the company will continue to be highly leveraged and that the proposed transaction could result in a weaker financial profile. About $230.6 million of total debt was outstanding at the company as of Sept. 27.

S&P said it will continue to monitor developments and will meet with management to discuss the company's future capital structure and financial policies before resolving the CreditWatch listing.

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