S&P rates Horsehead notes B-

Standard & Poor's said it assigned its B- corporate credit rating to Horsehead Holding Corp., along with a B- rating and 4 recovery rating to the company's $175 million senior secured notes due 2017.

The 4 recovery rating indicates 30% to 50% expected recovery in a default.

The proceeds will be used to fund the capital required for construction of a new zinc plant.

The outlook is stable.

The ratings reflect the company's vulnerable business risk and its leveraged financial risk, S&P said.

Weaknesses include high levels of debt and the risks relating to the construction of a large new zinc and diversified metals plant, the agency said.

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