S&P rates Wolverine loan BB, notes B+

Standard & Poor's said it assigned a BB- corporate credit rating to Wolverine World Wide Inc., along with a BB rating to its $1.1 billion senior secured credit facility with a recovery rating of 2, indicating 70% to 90% expected recovery in a default.

The agency also assigned a B+ rating to Wolverine's $375 million unsecured notes due 2020 with a recovery rating of 5, indicating 10% to 30% expected recovery in a default.

The outlook is stable.

The ratings reflect the company's aggressive financial profile given the higher debt levels following completion of the PLG acquisition resulting in pro forma debt-to-EBITDA leverage in excess of 4.5x, S&P said.

The company's financial policy is moderate and its business risk is considered fair, underpinned by the group's strong niche positions in the U.S. footwear market and the strength and growth potential of most of its brands, the agency said.

The company's business risk is constrained by the fragmented and competitive market in which Wolverine operates, as well as by its limited geographic diversification and narrow product offering, S&P added.

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