S&P assigns Charles River Laboratories convertibles BB-

Standard & Poor's said it assigned its BB- senior unsecured debt rating to Charles River Laboratories International Inc.'s $300 million 2.25% convertible senior notes due 2013.

The agency added that the notes are rated two notches below the BB+ corporate credit rating due to the amount of pre-existing borrowings with security provisions in the company's capital structure.

Although the convertible notes increase leverage, there is enough cushion at the existing rating level to absorb this increase, the agency noted.

S&P said that the rating continues to reflect Charles River's fairly narrow business profile, which outweighs its diverse customer base and sound financial policies.

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