S&P rates Sotheby's notes BB

Standard & Poor's said it assigned a BB senior unsecured debt rating and 5 recovery rating to Sotheby's proposed $300 million senior unsecured notes due 2022.

The company has indicated that it will use net proceeds from the 144A offering to redeem or repurchase any and all of the outstanding 7¾% senior unsecured notes due June 15, 2015 and for general corporate purposes, including the potential repayment of other existing debt.

The BB+ corporate credit rating and stable outlook on Sotheby's remain unchanged and reflect the company's fair business risk profile and intermediate financial risk profile.

The ratings also consider the company's business risk on its leading position as one of the two largest auctioneers in the highly volatile global auction markets and its experienced management team, countered by the very seasonal nature of its operations and the swings in its profitability, S&P said.

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