S&P gives Targus loans B, CCC+

Standard & Poor's said it affirmed its B corporate credit rating on Targus Group International Inc.

At the same time, S&P said it assigned its B rating and its 2 recovery rating to the company's revised $230 million senior secured first lien credit facility.

In addition, S&P said it assigned its CCC+ rating and its 5 recovery rating to the company's new $85 million second lien facility.

The outlook is stable.

S&P noted the ratings reflect the company's highly leveraged pro forma capital structure, the highly competitive operating environment and price-sensitive nature of the laptop 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.

These risks are somewhat mitigated by the company's leading market share in laptop cases and certain computer accessories, existing customer relationships and favorable trends relating to growth in laptop sales, the agency added.

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