S&P cuts SOLA unsecured debt to B

Standard & Poor's said it affirmed its BB- corporate credit and senior secured bank loan ratings on SOLA International Inc. and lowered SOLA's senior unsecured debt rating to B from BB- due to the increased encumbrance on assets imposed by the company's new bank facilities - more than 30% of adjusted assets.

The outlook is stable.

S&P said the speculative-grade ratings reflect SOLA's operating concentration in eyeglass lenses, a well-penetrated, mature, and innovative industry that faces external challenges from other forms of vision correction. The ratings also reflect the company's moderately aggressive capital structure.

These factors are partly offset by its meaningful global market share, which is second only to Essilor International. The company also has strong regional distribution channels, a higher margin product mix reflecting its recent launches of branded and advanced products, and adequate liquidity.

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