S&P lifts Harron

Standard & Poor's said it raised the corporate credit rating on Harron Communications LP to B+ from B and removed the ratings from CreditWatch, where they were placed with positive implications in March.

The agency also said it raised rating on the senior secured bank facility to BB- with a recovery rating of 2 from B with a recovery rating of 3.

The B- rating and 6 recovery ratings on the senior unsecured notes remain unchanged. The 2 recovery rating indicates 70% to 90% expected recovery in a default. The 6 recovery rating indicates 0 to 10% expected recovery in a default.

The outlook is stable.

This action follows the closing of Harron's offering of senior unsecured notes due 2020. The proceeds will be use to help fund a management buyout of buyout of certain existing shareholders and repay $55 million of term loan debt.

Harron amended its credit facility to allow for this note issuance, S&P said.

The ratings reflect a highly leveraged financial risk profile and fair business risk profile, reflecting a mature core basic video services business with modest revenue growth prospects, the agency said.

Tempering factors include its operations in less populated second-tier markets and its position as the leading provider of pay-TV services in its markets and expectations for healthy free cash flow generation, S&P said.

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