S&P rates B&G loan BB+, notes recovery revised to 4

Standard & Poor's said it affirmed the ratings on B&G Foods Inc., including its BB- corporate credit rating.

The outlook is stable.

The agency also said it assigned a BB+ rating to B&G's proposed $800 million senior secured credit facilities, consisting of a $500 million revolving credit facility due in 2019 and a $300 million term loan A due 2019.

The recovery rating on the proposed facilities is 1, indicating 90% to 100% expected default recovery.

S&P also said it affirmed the BB- rating on the company's existing 4 5/8% senior unsecured notes. The agency said it revised the recovery ratings on those senior unsecured notes to 4 from 3, indicating 30% to 50% expected default recovery.

This is a leverage-neutral transaction, S&P said.

The ratings reflect the company's participation in highly competitive end markets within the packaged food industry and limited geographic diversity, yet well-recognized brands with good market positions and above-average operating margins, the agency said.

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