S&P rates RGIS loans B+, B-

Standard & Poor's said it assigned a B+ corporate credit rating to RGIS Inventory Specialists, a B+ rating to the company's planned $420 million first-lien bank loan with recovery rating of 2 and a B-rating to the its planned $150 million second-lien credit facility with a recovery rating of 5.

The outlook is negative.

Proceeds from the bank loan will be used to pay a $500 million dividend to shareholders.

The ratings on RGIS reflect its inconsistent performance, weak cash flow measures and a highly leveraged capital structure, the agency said.

S&P said these risks are only partially offset by the company's leading position in the industry and its long relationships with nearly all of its largest customers.

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