S&P assigns Reddy Ice loans B

Standard & Poor's said it assigned its B- corporate credit rating to Reddy Ice Holdings Inc.

The outlook is stable.

In addition, S&P assigned a B issue-level rating and 2 recovery rating to operating subsidiary Reddy Ice Corp.'s proposed six-year $225 million first-lien senior secured term loan and five-year $50 million first-lien senior secured revolving credit facility.

"The ratings on Reddy Ice reflect our opinion that the company has a narrow product focus and participates in a highly fragmented and competitive industry, susceptible to unfavorable economic and weather conditions and seasonal demand," S&P credit analyst Jean Stout said in a news release.

"Our ratings also reflect our view of the company's aggressive financial policy, highly leveraged capital structure, and adequate liquidity," Stout added in the release.

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