S&P rates Interactive Health notes

Standard & Poor's said it assigned its B corporate credit rating to robotic massage chair producer and marketer Interactive Health LLC and its wholly owned subsidiary, Interactive Health Finance Corp.

At the same time, S&P assigned its B- senior unsecured debt rating to the company's proposed $80 million in senior unsecured notes due 2011, to be co-issued by Interactive and Interactive Finance.

Proceeds from the notes offering will be used to repay Interactive's existing debt and to make a distribution to its parent company, which will distribute the funds to its stockholders.

The outlook for both Interactive and Interactive Finance is stable.

S&P said the ratings on Interactive, as well as its wholly owned subsidiary Interactive Finance, reflect its substantial debt levels, narrow product focus, small size, customer and supplier concentration, and the discretionary nature of massage chair sales. Somewhat offsetting these factors are the company's leading market position in the luxury massage chair category as well as its innovative product designs and marketing strategy.

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