S&P rates EveryWare, loan B

Standard & Poor's said it assigned a preliminary B corporate credit rating to EveryWare Inc. The outlook is stable.

The agency said it also assigned a preliminary B issue-level rating to EveryWare's $150 million senior secured term loan due in six years. The preliminary recovery rating is 3, indicating an expectation for meaningful recovery in the event of a payment default.

The speculative-grade ratings on EveryWare reflect S&P's assessment that the company's financial risk profile is "highly leveraged," given the significant debt obligations following the merger, and its very aggressive financial policy of seeking acquisitions and paying dividends to its owners.

"Based on the company's small EBITDA base and heavy debt burden, we believe its credit metrics will deteriorate quickly if it incurs operating difficulties," said S&P credit analyst Stephanie Harter in a news release.

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