S&P rates Reichhold Industries, notes BB-

Standard & Poor's said it assigned its BB- corporate credit rating to Reichhold Industries Inc.

At the same time, the agency said it assigned a BB- rating to $195 million of senior unsecured notes due 2014.

The outlook is stable.

S&P noted that the ratings on Reichhold reflect aggressive debt leverage, low operating margins, cyclicality of the company's markets and a limited track record of earnings at the improved levels of recent years, adding that these weaknesses are tempered by meaningful market positions in its resins product lines, significant geographic diversity of sales, a good initial cash position and management's commitment to reduction of debt-like obligations.

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