S&P: HIT Entertainment on developing watch

Standard & Poor's said it placed its CCC+ long-term corporate credit rating on HIT Entertainment Ltd. and subsidiary HIT Entertainment Inc. on CreditWatch with developing implications.

The agency said it also placed its CCC+ issue rating on the first-lien credit facilities and CCC- issue rating on the second-lien facilities of HIT Entertainment Inc. on CreditWatch with developing implications. The recovery rating on the first-lien facilities is unchanged at 3 and the recovery rating on the second-lien facilities remains unchanged at 6.

The agency said it subsequently withdrew all issuer, issue and recovery ratings on HIT Entertainment Ltd. and Hit Entertainment Inc. at HIT's request.

S&P said the CreditWatch placement follows the recent announcement by Mattel Inc. that it has entered into an agreement to buy HIT for $680 million. S&P could have raised the ratings on HIT if the acquisition were finalized and the sale proceeds were used to fully repay HIT's existing senior debt or lowered the ratings on HIT if the transaction did not close, the agency said.

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