S&P assigns Beverages & More! B-, notes CCC+

Standard & Poor's said it assigned its B- corporate credit rating to Beverages & More! Inc. (BevMo).

The agency said it also assigned a CCC+ rating to the company's $100 senior secured notes due 2012, adding that the ratings reflect BevMo's participation in the highly competitive alcoholic beverage retail industry, limited regional focus, small size and market share and dependence on product introductions from producers for growth.

The outlook is stable.

The agency noted that BevMo has a good operating history with strong growth from both robust same-store sales and an increased store base and the growth has allowed the company to leverage off its current infrastructure as evidenced by improving profitability margins.

However, the substantial debt levels resulting from the transaction create a situation where BevMo is subject to considerable financial risk, S&P said.

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