S&P puts USI on negative watch

S&P said it placed all of the ratings on USI Inc., including the B long-term corporate credit rating, on CreditWatch with negative implications.

The CreditWatch placement follows news that USI reached a definitive agreement with Kohlberg, Kravis, Roberts and a Canadian pension fund (Caisse de depot et placement du Quebec) to be acquired for $4.3 billion, S&P said.

The deal will give the new owners a collective and equal majority stake in USI, the agency said.

The CreditWatch placement reflects the limited information regarding the details of the transaction and the resultant uncertainty regarding the transaction's effect on USI's capital structure, cash flows and credit-protection measures, S&P said.

The resolution will depend primarily on how USI's financial policy and credit-protection measures will differ from the pre-acquisition expectations, the agency explained.

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