S&P rates Hillman loans B, notes CCC+

Standard & Poor's said it affirmed its B corporate credit rating on the Hillman Group Inc.

All ratings were removed from CreditWatch negative, where they were placed on May 20.

The outlook is stable.

At the same time the agency assigned a B issue-level rating to Hillman's proposed $680 million senior secured credit facility, which includes a $70 million revolving credit facility due 2019 and a $610 million term loan due 2021. The recovery rating is 3, reflecting expectations for meaningful (50% to 70%) recovery in the event of payment default.

S&P also assigned a CCC+ issue-level rating to the proposed $270 million senior unsecured notes due 2022. The recovery rating for the notes is 6, reflecting expectations for negligible (0% to 10%) recovery in the event of payment default.

"The ratings on Hillman reflect our view that the company's financial risk profile is 'highly leveraged' and that the business risk profile is 'fair,'" S&P credit analyst Stephanie Harter said in a news release.

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