S&P rates Sotheby's notes BB+

Standard & Poor's said it assigned a preliminary BB+ rating to Sotheby's unlimited Rule 415 shelf registration for debt securities, along with preliminary senior unsecured ratings of BB and preliminary subordinated debt ratings of BB-.

The proceeds will be used for general corporate purposes, including investments in its business operations, reducing or refinancing existing debt or redeeming outstanding securities, the agency said.

The company's BB+ corporate credit rating and stable outlook remain unchanged and reflect the company's fair business risk profile and its intermediate financial risk profile, S&P said.

The company's fair business risk is based on its leading position as one of the two largest auctioneers in the highly volatile global auction markets and its experienced management team, the agency said, countered by the very seasonal nature of its operations and the swings in its profitability.

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