S&P: Radio Systems view up, notes rated B-

Standard & Poor's said it affirmed its corporate credit rating on Radio Systems Corp. at B-, and revised its outlook to positive from stable.

At the same time, the agency said it assigned its B- issue-level rating to Radio System's proposed $250 million senior secured notes due 2019. The recovery rating is 4, indicating an expectation for average recovery for lenders in the event of a payment default.

"The outlook revision on RSC reflects our view that following the close of the proposed transaction, RSC will have adequate liquidity, including expected financial covenant cushion of more than 15 percent," said S&P credit analyst Stephanie Harter in a news release.

The agency said it could raise the ratings over the next year if recent improvements in operating performance continue and the company is able to sustain leverage below 5x and maintain adequate liquidity with covenant cushion of at least 15%.

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