S&P: Harmony Foods notes at B-

Standard & Poor's said that it assigned a B- corporate credit rating to Harmony Foods Corp. following the completion of the refinancing transaction.

The outlook is stable.

S&P also assigned a B- issue-level rating to the company's $115 million of senior secured notes due 2016. The recovery rating is 4, indicating the expectation for average (30% to 50%) recovery in the event of a payment default.

The company used the proceeds from the offering to refinance existing debt, fund a $46 million distribution to equity holders and pay transaction fees and expenses.

The ratings on Harmony Foods reflect the view of the company's vulnerable business profile and highly leveraged financial profile given its narrow product focus, small size and high debt leverage, the agency said.

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