S&P rates CPG loan B, notes CCC+

Standard & Poor's said it affirmed the B corporate credit rating on CPG International Inc.

The outlook is stable.

At the same time, S&P assigned a B issue-level rating to the company's proposed $625 million seven-year secured bank term loan with a recovery rating of 4, indicating that lenders can expect average recovery (30%-50%) in the event of a default.

The agency also assigned a CCC+ issue level rating to the proposed $315 million eight-year senior unsecured notes with a recovery rating of 6, indicating negligible recovery (0%-10%) for noteholders in the event of a default.

Under the proposed financing structure, CPG will benefit from the lack of any near-term debt maturities, modest capital spending requirements and good coverage of interest requirements (2.5x or higher), S&P said.

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