S&P: Toys 'R' Us notes CCC

Standard & Poor's said it assigned a CCC+ rating and 6 recovery rating to Toys 'R' Us Inc.'s $350 million senior notes due in 2017.

The proceeds, together with cash on hand, will be used to redeem the $400 million outstanding principal amount of its 2013 notes.

The $350 million notes due 2017 are issued by Toys 'R' Us Inc. under Rule 144A with registration rights.

The holding company notes are structurally subordinated to the creditor claims of its subsidiaries, S&P said.

These notes are unsecured and will not be guaranteed by any of the group's subsidiaries, the agency said.

The 6 recovery rating indicates 0% to 10% expected recovery in a default.

The company's B corporate credit rating is unchanged.

The outlook is stable.

With this transaction, the company partly addresses significant debt maturity in 2013, the agency said.

The ratings continue to reflect a belief that the company's financial risk profile will remain highly leveraged given expectations for limited improvement in credit protection measures in 2012, S&P said.

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