S&P rates Norcross loan add-on BB-

Standard & Poor's said it affirmed its B+ corporate credit rating and other ratings on Norcross Safety Products LLC and assigned a BB- senior secured debt rating and 1 recovery rating to the company's proposed senior secured $65 million tack-on term loan, which will mature in 2012.

The outlook is negative.

Proceeds from the transaction will be used to fund the acquisition of Fibre-Metal Products Co.

S&P said the ratings on Norcross Safety Products reflect the company's weak business position operating in highly fragmented niche markets, as well as its highly leveraged financial profile and limited financial flexibility.

S&P noted that Norcross has diverse, consumable product lines and a large customer base that make it somewhat recession-resistant, even though the business is driven by commercial and industrial activity.

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