S&P rates Harrington B, loans B, CCC+

Standard & Poor's said it assigned its B corporate credit rating to Harrington Holdings Inc.

The outlook is stable.

At the same time, S&P said it assigned its loan and recovery ratings to the company's senior secured financing, consisting of a $45 million first-lien revolving credit facility due in January 2012, a $175 million senior secured first-lien term loan due in January 2013 and a $50 million senior secured second-lien term loan due July 2014.

The first-lien debt was rated B with a recovery rating of 2, the agency said, adding that the second-lien debt was rated CCC+ with a recovery rating of 5.

The term loans, along with rollover and sponsor equity, were used to finance the acquisition of HHI by sponsor The Jordan Co., S&P noted.

According to the agency, the B corporate credit rating on Harrington reflects the company's position as a midsize company in the fragmented medical product distribution market, the potential for margin pressures, the relatively low barriers to entry for the company's services and its highly leveraged capital structure.

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