S&P lifts VCA Antech to stable

Standard & Poor's said it affirmed the BB corporate credit rating on VCA Antech Inc., along with its BB+ rating on subsidiary Vicar Operating Inc.

The agency said it revised the outlook to stable from negative because the agency is increasingly confident that VCA can expand, while maintaining leverage below 4x.

The ratings reflect an assessment of VCA's business risk profile as fair, S&P said, based on a leading, but narrow market focus.

Its financial risk profile is significant, revised from aggressive, according to the agency's criteria.

The ratings also incorporate an expectation that VCA, through acquisitions, will increase revenues through 2013 at low double-digit rates, S&P said.

The fair business risk profile reflects VCA's narrow focus in a mature business, subject to a sluggish economy, the agency added.

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