S&P gives Reliance notes BBB-, BB-

Standard & Poor's said it assigned its BBB- debt rating to Reliance LP's C$1.075 billion senior secured notes maturing 2012 through 2017.

At the same time, S&P said it assigned its BB- debt rating, with a recovery rating of 5, to Reliance Intermediate Holdings LP's $293 million senior secured notes due 2014.

Proceeds from the issue will be used to refinance the bridge debt that was used to purchase Reliance Comfort LP, formerly the UE Waterheater Income Trust, the agency noted.

According to S&P, the ratings reflect the very stable and predictable cash flows generated from the water heater business, tempered with the more variable and higher risk security monitoring business, which generates 20% of EBITDA.

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