S&P rates Erico notes B-

Standard & Poor's said it assigned its B+ corporate credit rating to Erico International Corp. and assigned its B- rating to the company's proposed offering of $135 million senior subordinated notes due 2012.

The proceeds will be used to refinance existing debt.

The outlook is positive.

S&P said the ratings on privately held Erico reflects its narrowly defined niches in industrial businesses, relatively high leverage, and limited financial flexibility, partially offset by its diversified product, geography, and customer base.

Founded in 1903, Erico has strong market shares in niche products where it has leading positions in five of its six product lines. Products have long life cycles with superior technical performance and strong brand names. The business is characterized by its high variable costs, good operating margins, and low capital intensity.

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