S&P affirms Radio Systems, loan B+

Standard & Poor's said it affirmed the B corporate credit rating on Radio Systems Corp., and assigned a B+ rating to its proposed $225 million senior secured credit facility due 2015.

The outlook is stable.

The recovery rating on the proposed credit facility is 2, indicating 70% to 90%expected recovery in a default.

The ratings are subject to receipt of final documents. The agency said it expects to withdraw its B+ rating and 2 recovery rating on the company's existing $150 million term loan due 2013 and $55 million revolver due 2011

upon completion of the proposed refinancing and repayment of this existing debt.

The ratings reflect the company's narrow business focus, discretionary product offerings, some customer concentration, exposure to technology risk and risks related to outsourcing substantially all of its manufacturing to third parties, S&P said.

The company benefits from the company's leading market share in the niche pet containment and training industry, long-time relationships with customers and suppliers and patent protection, the agency said.

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