S&P rates William Carter loan BB

Standard & Poor's said it assigned its BB rating and 2 recovery rating to The William Carter Co.'s (Carter's) proposed $625 million secured bank facilities and affirmed its BB long-term corporate credit rating, BB+ senior secured debt rating and B+ subordinated debt rating.

The outlook is stable.

Proceeds from the new bank loan will be used primarily to finance the company's previously announced acquisition of Osh Kosh B'Gosh and to redeem its 10.875% notes due 2011.

S&P said the ratings on Carter's reflect the company's narrow product focus and its intensely competitive operating environment. These factors are somewhat offset by its leading positions in the infant and children's apparel industry, its diversity of distribution channels, and favorable demographic trends.

The new credit facility includes a $125 million revolving credit facility due 2011 and a $500 million term loan due 2012.

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