S&P rates HIT Entertainment second-lien loan CCC+

Standard & Poor's said it assigned its CCC+ bank loan rating and a recovery rating of 5 to a proposed $172 million second-lien term loan due 2013 of HIT Entertainment Inc.

At the same time, the agency said it affirmed its B corporate credit rating on HIT and its holding company, HIT Entertainment Ltd.

S&P said it also affirmed its B bank loan rating and a recovery rating of 3 on HIT's $453 million first-lien credit facilities due 2011.

The agency said the ratings reflect HIT's significant content distribution risk relating to its broadcast partners, its narrow base of operation, its participation in a mature and competitive industry with limited internal growth prospects and its aggressive financial policy.

These factors are only partially offset by the company's strong brand properties, S&P added.

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