S&P rates Hanesbrands notes BB-

Standard & Poor's said it revised the outlook on Hanesbrands Inc. to stable from negative and affirmed the BB- corporate credit on the company.

The agency also said assigned a BB- senior unsecured rating to the company's proposed $750 million senior unsecured notes due 2020. A 4 recovery rating was assigned, indicating a 30% to 50% recovery in a default.

The agency also said it raised its existing unsecured notes to BB- and revised the recovery rating to a 4, indicating 30% to 50% recovery in a default, from 5.

The proceeds will be used to refinance existing debt including borrowings under its senior secured credit facilities and debt associated with its recent $227 million acquisition of Gear For Sports, S&P said.

If the transaction is not completed as contemplated, the agency said it would lower the unsecured debt ratings to B+ and revise the recovery rating to 5.

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