S&P rates Rayovac loan B+, notes B-

Standard & Poor's said it affirmed its ratings on Rayovac Corp. and United Industries Corp., including both B+ corporate credit ratings, which were removed from CreditWatch where they had been placed on Jan. 4. The outlook is stable.

In addition, S&P assigned a B+ rating and 3 recovery rating to Rayovac's planned $1.2 billion bank facility. S&P also assigned a B- rating to Rayovac's planned $500 million senior subordinated note offering due 2015.

S&P also affirmed United Industries' B+ senior secured bank loan rating and B- senior subordinated debt rating.

Proceeds from these issues will be used to finance Rayovac's planned acquisition of United Industries for $1.2 billion or 8.7x pro forma EBITDA.

S&P said the ratings on Rayovac reflect the company's aggressive acquisition history, high leverage and integration risks associated with the planned United Industries acquisition.

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