Moody's rates Cooper facilities Ba3

Moody's Investors Service said it assigned Ba3 ratings to the proposed credit facilities of The Cooper Cos. Inc., including a $275 million five-year senior secured revolver, a $325 million five-year senior secured term loan A, and a $150 million seven-year senior secured term loan B.

Moody's also assigned a Ba3 senior implied rating, a B1 senior unsecured issuer rating, and an SGL-2 speculative grade liquidity rating to the company. The outlook is stable.

According to Moody's, the ratings reflect the company's high leverage, integration risks associated with the Ocular Sciences Inc. acquisition, and the company's aggressive growth strategy and continued interest in acquisitions. The ratings further reflect the highly competitive environment, the company's limited size relative to its competitors, and its primary focus on a single line of business.

Credit strengths considered by Moody's include Cooper's strong historical performance and Ocular's favorable performance trends, the strong growth anticipated for the soft contact lens industry, the company's solid competitive position, and the company's history of success in acquiring and integrating companies.

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