S&P: Wolverine World loan BB

Standard & Poor's said it assigned a BB- preliminary corporate credit rating to Wolverine World Wide Inc.

The agency also said it assigned a preliminary BB rating to Wolverine's proposed $1.1 billion senior secured credit facility, one notch above the corporate credit rating.

The facility consists of a $400 million term loan A, a $500 million term loan B and a $200 million revolver.

The preliminary recovery rating on the facility is 2, reflecting 70% to 90% expected recovery in a default.

The outlook is stable.

The ratings reflect the company's aggressive financial profile following completion of the PLG acquisition, as the company will have a high level of debt with pro forma debt-to-EBITDA leverage in excess of 4.5x, S&P said.

The agency also said it believes the company's financial policy is moderate, given the pending debt-financed transaction.

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