S&P rates WH Holdings notes

Standard & Poor's said it assigned its BB- corporate credit rating to WH Holdings Ltd., the indirect parent of Herbalife International Inc. (BB-/stable/--). At the same time, S&P assigned its B rating to the proposed $275 million notes due 2011 to be co-issued by WH Holdings and WH Capital Corp.

Proceeds from the offering will be largely used to redeem WH Holdings' outstanding preferred stock of about $220 million and to repay about $50 million in holding company debt.

Concurrently, S&P raised its bank loan rating on subsidiary Herbalife International's $105 million senior secured credit facilities to BB from BB-. All other ratings are affirmed, including the company's BB- corporate credit rating.

The outlook is stable.

S&P said the ratings continue to reflect the risks associated with Herbalife's network marketing business model, intense competition in the weight management and nutritional supplements industries, and product liability and negative publicity risks. These risks are partially mitigated by the company's relatively stable cash flow generation and the geographic diversity of its operations.

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