S&P affirms HIT

Standard & Poor's said it affirmed its bank loan and recovery ratings on first-lien term loan B of HIT Entertainment Inc. (B/negative), following the announcement that the company will add $70 million to its existing $376 million first-lien term loan.

Pro forma for the proposed add-on term loan, the first-lien credit facilities will consist of a $77 million revolving credit facility due 2011 and a $446 million term loan B due 2012, the agency said, adding that the first-lien loans are rated B, at the same level as the corporate credit rating.

The 3 recovery rating indicates an expectation of meaningful recovery of principal in the event of a payment default, S&P said, noting that also affirmed were the bank loan and recovery ratings on the company's $173 million second-lien term loan due 2013.

The CCC+ bank loan rating is two notches below the corporate credit rating with a 5 recovery rating, S&P added.

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