S&P: Spectrum unaffected

Standard & Poor's said its rating on Spectrum Brands Inc. (CCC+/negative) is not currently affected by the company's announcement that it has obtained a $225 million revolving credit facility due 2011 (unrated).

Spectrum Brands did not previously have a revolving credit facility in place, the agency said.

In conjunction with this transaction, the company used cash on hand to repay $200 million of term loan debt, S&P noted, adding that while the revolving credit facility improves the company's liquidity, debt leverage remains very high, at over 8x and the company has yet to establish sustained improvement in its operating performance.

The agency noted that it believes the company will continue to focus on asset sales in order to help materially improve its capital structure and liquidity.

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