S&P: Hanesbrands revolver BBB-

Standard & Poor's said it assigned a BBB- rating to Hanesbrands Inc.'s proposed $1.1 billion senior secured revolving credit facility due 2018.

The recovery rating on the secured credit facility is 1, indicating 90% to 100% expected default recovery.

The agency also said it revised the unsecured recovery rating to 4 from 3 as a result of the increased size of the secured revolving credit facility.

The BB corporate credit rating and BB unsecured debt ratings remain unchanged.

The outlook is stable.

S&P said it expects the company to use the new $1.1 billion revolving credit facility for acquisitions and working capital needs.

This includes incremental debt to fund Hanesbrands' acquisition of Maidenform Brands Inc. for about $575 million in cash, the agency said.

Pro forma for the acquisition of Maidenform and based on expectation that the company will repay the remaining $250 million of its 8% senior notes later this year, S&P said it estimates the ratio of adjusted total debt-to-EBITDA will be about 3.5x by the end of 2013, compared to leverage of about 3.3x through the 12 months that ended March 31.

The company's financial risk profile will continue to be significant given improved credit metrics following debt reduction, the agency said. Its liquidity profile is adequate and the company's financial policy is expected to remain modest, S&P said.

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