S&P gives HVHC loan BB

Standard & Poor's said it assigned its BB counterparty credit rating to HVHC Inc.

The outlook is stable.

At the same time, S&P said it assigned its BB bank loan rating and 3 recovery rating to the company's proposed $155.0 million senior secured credit facility due in 2013 and $25 million revolving credit facility due in 2011.

S&P added that the counterparty credit rating on HVHC reflects that HVHC operates in an increasingly competitive and promotional optical retail industry, maintains average balance sheet quality, moderately high debt leverage and high level of goodwill and intangibles and is exposed to integration risks associated with its proposed Eye Care Centers of America Inc. (B/positive) acquisition.

Offsetting these negatives are its adequate competitive position, favorable industry fundamentals and demographic trends and good earnings profile, the agency said.

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