S&P rates Compass loan BB-

Standard & Poor's said it affirmed the BB- corporate credit rating on Compass Group Diversified Holdings LLC.

The agency also said it assigned a BB- rating to the company's proposed $225 million term loan B due 2017 and $275 million revolver due 2016 with a recovery rating of 3, indicating 50% to 70% expected recovery in a default.

The outlook is stable.

The proceeds will be used from the new senior secured facility to refinance its existing term debt and revolver balance, S&P said.

The ratings reflects an expectation of high single-digit growth in organic revenue and a high double-digit percent growth in organic EBITDA in the full year 2011, resulting from favorable demand trends in the majority of the company's nine businesses, the agency said.

S&P said it considers the company's business risk profile as weak, based on its disparate collection of small- to mid-size businesses and the inherent difficulties in managing performance across a growing business portfolio.

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