S&P rates StoneMor notes B-

Standard & Poor's said it assigned its B- rating to StoneMor Partners LP's $175 million unsecured notes, with a 4 recovery rating, indicating prospects of average recovery (30%-50%) of principal in the event of a default. The company also has a $140 million revolving credit facility that S&P does not rate.

The ratings on StoneMor Partners reflect its "weak" business risk highlighted by its narrow focus in the mature death care industry with a higher concentration in the slow-growth cemetery services than its industry peers, S&P said in a news release.

The rating also reflects the company's "highly leveraged" financial risk profile supported by its less than adequate liquidity as a result of S&P's expectation of continued negative discretionary cash flow following unitholder distributions.

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