S&P affirms Reebok

Standard & Poor's said it raised its senior secured debt rating on The Hockey Co. to BBB from B and removed the rating from CreditWatch, where it was placed April 8.

This follows Reebok International Ltd.'s recent acquisition of substantially all of the stock of The Hockey Co. for about $200 million plus the assumption of about $125 million of debt. At the same time, the BBB corporate credit and senior unsecured debt ratings on Reebok were affirmed.

The outlook on both companies is stable.

The Hockey Co. and Sport Maska Inc. have also begun a tender offer for their entire existing senior secured notes due 2009. After the successful retirement of this debt, the BBB senior secured debt rating will be withdrawn.

S&P said the ratings on Reebok continue to reflect its well-recognized brand name, improved product portfolio, and good cash flows and liquidity position. These factors are somewhat offset by the high degree of fashion risk in the athletic footwear market and significant competition in Reebok's core segments.

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