Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers V > Headlines for Vector Group Ltd. > News item |
S&P rates Vector notes B+
Standard & Poor's said it assigned a B corporate credit rating to Vector Group Ltd. and a B+ rating its $325 million senior secured notes maturing in 2015 and $75 million add-on. The 2 recovery rating indicates expectation for 70% to 90% recovery.
The outlook is stable.
"The B corporate credit rating reflects our opinion that Vector Group has a highly leveraged financial profile as a result of its leveraged balance sheet, pro forma for the proposed add-on debt offering and aggressive financial policy," S&P analyst Mark Salierno said in a statement.
The company's business risk profile is weak, reflecting its participation in the intensively competitive discount segment within the declining cigarette industry, significant litigation risk inherent to U.S. tobacco manufacturers and lack of geographic diversification, according to the agency.
The company's ownership of New Valley LLC provides some business diversification, the agency noted.
Pro forma adjusted debt-to-EBITDA ratio is about 4.7x at the close of the transaction, compared with leverage of about 4.2x for the 12 months ended Sept. 30.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.