S&P rates Carriage Services, notes B

S&P said it assigned its B corporate credit rating to Carriage Services Inc.

The outlook is positive.

At the same time, the agency assigned a B issue-level rating to the $350 million senior notes due 2018. The 4 recovery rating indicates expectations for average (30%-50%; rounded estimate: 30%) recovery in the event of a default.

The secured revolver and convertible subordinated notes are unrated.

S&P said the ratings reflect the company's limited scale, narrow focus in the mature, yet highly fragmented death care industry, and concentration in the funeral services segment.

The ratings are also based on the company's exposure to capital market risk in the pre-need trust portfolio, limited free cash flow generation and high debt leverage, the agency said.

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