S&P lowers Harlan Laboratories

Standard & Poor's said it lowered the corporate credit rating on Harlan Laboratories Inc. to B from B+ and the senior secured debt rating on Harlan's credit facility to B from BB-, and revised the recovery rating to 3 from 2. The 3 recovery rating indicates expectations for 50% to 70% recovery.

The outlook is negative.

"The ratings on Harlan, a provider of lab research models and preclinical services, reflect the company's aggressive debt leverage, tight covenants, an operating focus in markets that include some larger competitors, and recently, the ongoing, difficult conditions in the pharmaceutical outsourced research services industry," S&P analyst Arthur Wong said in a statement.

The company's global reach, customer diversity and longer-term macroeconomic trends that support spending on its services partially offset these factors, the agency noted.

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