S&P rates Totes Isotoner debt B, CCC+

Standard & Poor's said it affirmed the B corporate credit rating on Totes Isotoner Corp. and assigned a B issue-level rating on the $145 million senior secured first-lien debt and $15 million delayed draw facility due 2017. The recovery rating is 4, indicating average (30% to 50%) recovery.

S&P also assigned a CCC+ issue-level rating on the $80 million senior secured second-lien debt due 2017. The recovery rating is 6, which indicates negligible (0 to 10%) recovery for debtholders in the event of payment default.

The outlook is stable.

The rating affirmation reflects the company's improved profitability over the past two years and enhanced liquidity as the recapitalization extends maturities, the agency said. Credit metrics remain in line with the B category medians despite the $45 million debt financed dividend.

The company's ratings reflect the company's weak credit metrics and narrow business focus, the agency added.

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