S&P rates Water Pik loans B+

Standard & Poor's said it assigned its B corporate credit rating to Water Pik Inc. S&P also said it assigned its B+ issue-level ratings to Water Pik's $160 million senior secured credit facility.

The senior secured credit facility comprises a five-year $20 million revolving credit facility and a six-year $140 million term loan. The recovery rating on this debt is 2, indicating S&P's expectation for substantial recovery in the event of a payment default, the agency said.

The outlook is stable.

The speculative-grade ratings on Water Pik reflect S&P's view of the company's vulnerable business profile and highly leveraged financial profile, given the company's participation in the highly competitive oral health care market, narrow product focus, small size, customer and supplier concentration, and, in S&P's view, its high pro forma debt leverage and aggressive financial policy.

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