S&P rates Empire, notes B

Standard & Poor's said it assigned Empire Today LLC a preliminary B corporate credit rating and its $150 million of senior secured notes due 2016 a preliminary B issue rating with a 4 recovery rating, indicating the expectation for average (30%-50%) recovery in the event of a payment default.

The outlook is stable.

Proceeds will be used to repay existing debt, to pay a dividend and to pay various corporate expenses.

The ratings reflect the company's reliance on discretionary consumer spending for major home improvement projects and effective TV advertising to generate customer leads as well as its narrow product selection, S&P said.

The ratings also reflect the company's aggressive financial policy and vulnerable business risk profile, the agency said.

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