S&P gives B to ABB/Con-Cise loans

Standard & Poor's Ratings said it affirmed its B corporate credit rating on ABB/Con-Cise Optical Group LLC.

The outlook is stable.

At the same time, S&P assigned its B issue rating to the proposed $330 million senior secured credit facilities. The recovery rating on the senior secured credit facilities is 3, indicating that lenders could expect meaningful (50% to 70%) recovery in the event of a payment default or bankruptcy.

"The ratings on ABB reflect the company's narrow focus in the highly competitive contact lens distribution industry, its continuing vulnerability to decisions made by the four major contact lens suppliers, low barriers to entry and the ability of customers to switch distributors fairly easily," S&P credit analyst Jerry Phelan said in a news release.

"The ratings also reflect the company's modest free cash flow generation after tax distributions and its aggressive financial policy," Phelan added in the release.

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