S&P rates Cooper loan BB

Standard & Poor's said it assigned its BB bank loan rating with a recovery rating of 3 to Cooper Cos. Inc.'s $750 million senior secured credit facility. Existing ratings on the company, including the BB corporate credit rating, were affirmed.

The outlook is stable.

S&P said the rating on Cooper reflects the company's single product line focus, its No. 3 position (18% global market share) in the $4 billion soft contact lens industry, exposure to changes in technology in specialty lenses and the risks inherent in integrating the company's largest-ever acquisition (Ocular Sciences Inc.) in January 2005.

Cooper benefits from favorable industry demographics: high-single-digit sales growth is driven by a growing teen population, increased incidence of myopia and continued improvement in soft contact lens visual acuity, comfort and care, the agency said.

In addition, Ocular has a strong relationship with retail chains, Cooper has emphasized sales through independent practitioners such as optometrists and ophthalmologists and both companies are in the process of improving their manufacturing processes, which should increase capacity and improve the cost structure.

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