S&P rates Solo Cup notes, facility

Standard & Poor's said it assigned its B+ corporate credit rating to Solo Cup Co. and assigned its B+ bank loan rating and a recovery rating of 4 to the company's proposed $800 million senior secured credit facilities.

In addition, S&P assigned a B- rating to the company's proposed $325 million senior subordinated notes due 2014 to be issued under Rule 144A with registration rights.

The outlook is stable.

S&P also revised the CreditWatch implications for Sweetheart Cup Co. and affiliates to positive from developing.

In December, S&P placed its ratings on Sweetheart on CreditWatch with developing implications following the announcement that Solo Cup Co. had entered into a definitive agreement to acquire Sweetheart's ultimate parent company, SF Holdings Group Inc., at an acquisition price of about $880 million (including operating leases). In connection with the acquisition, all of Sweetheart's outstanding debt is expected to be refinanced.

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