S&P rates ASG notes B+

Standard & Poor's said it affirmed the B+ rating on ASG Consolidated LLC's senior unsecured notes after the company increased the size of the issue to $251 million from $196 million through a $55 million add-on.

The agency revised the recovery rating on the notes to 3 from 4. The company has a B+ corporate credit rating.

The outlook was revised to negative from stable.

S&P said the revised outlook is based on the company's more aggressive financial policy as a result of its issuance of an additional $55 million of senior discount notes at ASGC, as the company distributed these proceeds to shareholders.

Pro forma total debt-to-EBITDA ratio will rise to about 6 times from about 5.7 times as March 31.

Ratings reflect the company's high leverage, aggressive financial policy and participation in the competitive, commodity-oriented commercial fishing industry, the agency said.

ASGC has the leading position as the largest and lowest-cost producer in the industry, along with a proven track record for operating under the highly regulated environment, S&P said.

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