Tool and equipment retailer Harbor Freight Tools USA Inc. Is seeking to refinance its existing debt and pay a dividend to its owners. We are affirming all ratings on the company, including our 'BB-' corporate credit rating. We are also assigning a 'BB-' issue-level rating and a '3' recovery rating (low end of the range) to the proposed term loan. The stable outlook reflects our view that increased leverage will decline to under 4x over the next twelve months through EBITDA growth and debt reduction from good cash flow generation despite increased interest expense and capital spending. On Aug. 3, 2016, S&P Global Ratings affirmed all of its ratings on Calabasas, Calif.-based tool and equipment retailer Harbor Freight Tools USA
