S&P rates Harbinger notes B-

Standard & Poor's said it assigned its B corporate credit rating to Harbinger Group Inc. The outlook is stable.

At the same time, S&P said it assigned its B- issue rating to the company's $500 million senior secured notes due 2015. The recovery rating is 5, indicating S&P's expectation for modest recovery for noteholders in the event of a payment default, the agency said.

The speculative-grade ratings on Harbinger reflect S&P's analysis that the company's creditors are structurally subordinated to the liabilities of its operating subsidiaries Spectrum Brands Inc. and Fidelity & Guaranty Life Insurance Co. It also reflects S&P's view that Harbinger's operating portfolio lacks diversification, though the agency expected the company to improve through future acquisitions, and that management has a limited track record with its stated investment strategy of seeking controlling equity stakes and of maintaining ownership over a long-term horizon, the agency said.

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