S&P gives Radio Systems, loan B

Standard & Poor's said it assigned its B corporate credit rating to Radio Systems Corp.

The outlook is positive.

At the same time, S&P said it assigned its loan and recovery ratings to the company's proposed $195 million senior secured credit facility, consisting of a $150 million term loan due 2013 and a $45 million revolving credit facility due 2011, adding that the facility is rated B with a recovery rating of 2.

S&P added that the B corporate credit rating reflects Radio Systems' exposure to technology risk and overall narrow product focus, a highly competitive operating environment, moderate customer concentration with the company's key retailers and some vulnerability to weak economic and retail environments.

These risks are somewhat mitigated by the company's leading market share in the niche pet containment and training industry and favorable demographic industry trends relating to growth in pet ownership and spending, the agency said.

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