S&P lowers Targus

Standard & Poor's said it lowered its corporate credit rating on Targus Group International Inc. to B- from B.

In addition, S&P said it affirmed the B ratings on Targus' $40 million senior secured revolving credit facility due 2011 and $190 million term loan B due 2012, while the recovery ratings remain 2.

The agency said it also affirmed the CCC+ rating on the company's $85 million second-lien term loan maturing in 2013, and the recovery rating remains 5.

According to S&P, the ratings on Targus reflect the company's very highly leveraged capital structure, the highly competitive operating environment and price-sensitive nature of the laptop computer case and accessory business, technology risk within the accessories product line, some customer concentration across the three distribution channels and vulnerability to weak economic and retail environments.

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