CARY – Standard & Poor's Rating Services called the holding company that owns Sage Products LLC "highly leveraged" and assigned a junk rating to its $380 million debt issue.

Cary-based Sage Products Holdings III LLC got a B rating earlier this month. That means the company is able to meet financial commitments but faces adverse conditions. BBB- is considered the lowest investment grade by market participants, according to the rating agency.

Chicago private equity firm Madison Dearborn Partners LLC bought Sage Products in December for $350 million, Crain's Chicago Business reported.