S&P gives Central Garden notes BB-

S&P said it assigned a BB- issue-level rating to Central Garden & Pet Co.'s proposed $300 million senior unsecured notes due 2028.

The 4 recovery rating indicates that creditors could expect average (30% to 50%, rounded estimate 30%) recovery in the event of a payment default.

The agency also revised the recovery rating on the existing $400 million 6 1/8% senior unsecured notes due 2023 to 4 (30% rounded recovery estimate) from 3 due to the higher amount of proposed unsecured debt in the capital structure.

The BB- corporate credit and senior unsecured note issue-level ratings are unchanged, and the outlook is positive.

S&P said the ratings on Central incorporate the company's meaningful operational improvements over the last four to five years, defensible positions in the niche pet supply and garden products sectors and moderate balance sheet leverage, including adjusted debt to EBITDA between 3.0-3.5x.

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