S&P rates Southern States notes B+

Standard & Poor's said it affirmed Southern States Cooperative Inc.'s corporate credit rating at B+ and assigned a B+ rating and recovery rating of 4 to the company's proposed $125 million senior unsecured notes due 2015. The recovery rating indicates an expectation of 30% to 50% recovery in the event of a default.

The outlook is negative.

The proceeds will be used to repay about $82 million of the company's outstanding senior unsecured notes due 2011 and to make a significant one-time pension contribution to its underfunded multi-employer pension plan, S&P said.

The agency said it expects Southern States to have about $150 million of reported debt outstanding at the close of the transaction.

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