S&P rates Revere loans B, CCC+

Standard & Poor's said it assigned its B corporate credit rating to Revere Industries LLC, B rating and 2 recovery rating to the firm's $25 million five-year senior secured first-lien revolving credit facility and $110 million six-year senior secured first-lien term loan and a CCC+ rating with a 5 recovery rating to the firm's $55 million 6.5-year senior secured second-lien term loan.

The outlook is stable.

Proceeds from the new credit facilities will be used to refinance the company's existing debt.

The ratings reflect Revere's vulnerable business profile as a small manufacturer of plastic and metal components that operates in highly fragmented niche markets, the company's highly leveraged capital structure and its thin cash flow protection, the agency said.

S&P said that Revere benefits, however, from well-established business positions, and a significant portion of its sales come from products with leading niche market shares. The company's focus on custom-engineered components helps it foster long-term customer relationships, the agency said, and it is often a key supplier to its clients.

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