S&P lowers Yankee Candle

Standard & Poor's said it lowered the rating on the Yankee Candle Co.'s proposed $725 million term loan B due 2019 to B+ from BB- following an increase in the term loan amount from its originally proposed size of $580 million.

The agency also said it revised the recovery rating to 2 from 1, indicating 70% to 90% expected recovery in a default.

The CCC+ ratings are unchanged on its 8½% senior unsecured notes due 2015, 9¾% senior subordinated notes due 2017 and 10¼% senior payment-in-kind toggle notes due 2016.

The recovery rating on all of these notes remains 6, indicating 0% to 10% expected recovery in a default.

The B corporate credit rating and stable outlook remain unchanged.

The ratings reflect an assessment of the company's highly leveraged financial risk profile, reflecting its high debt burden and aggressive financial policy, S&P said.

Although the agency said it recognizes the company's good market position and product offerings within the premium scented candle market, it views the company's business risk profile as weak because of its narrow product focus, significant earnings seasonality and the discretionary nature of its products.

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