S&P upgrades Harron loan

Standard & Poor's said it raised Harron Communications LP's senior secured credit facilities to BB from BB- and revised the recovery rating on this debt to 1 from 2.

The 1 recovery rating reflects 90% to 100% expected default recovery.

The upgrade reflects the company's secured debt prepayment, S&P said.

The B- rating and 6 recovery rating on Harron's 9 1/8% senior unsecured notes due 2020 remain unchanged after the company announced it will seek to add on $65 million to the existing $225 million of notes outstanding.

The 6 recovery rating reflects 0 to 10% expected default recovery.

The proceeds from the add-on will be used to repay a portion of senior secured credit facilities, as well as to fund a $25 million shareholder redemption, the agency said.

The B+ corporate credit rating and stable rating outlook remains unchanged.

The agency said it believes the company's financial policy might prevent such leverage reduction on a sustainable basis.

The ratings reflect the company's satisfactory business risk profile, reflecting its good profitability, its operations in less-competitive second-tier markets, its position as the leading provider of pay-TV services in its markets and an expectation of healthy growth prospects for high-speed data services, S&P said.

Tempering risk factors include a mature basic video services business with only modest revenue growth prospects and competitive pressures, the agency said.

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