S&P gives Swingset B

Standard & Poor's said it assigned its B corporate credit rating and stable outlook to Swingset Holdings Corp., parent of Bright Horizons Family Solutions Inc.

At the same time, the agency said it assigned a bank loan rating of BB-, two notches higher than the corporate credit rating on the parent, to operating subsidiary Bright Horizons' $440 million senior secured bank loan credit facilities.

S&P said it also assigned a recovery rating of 1 to this debt, adding that the credit facilities consist of a $75 million revolving credit facility due 2014 and a $365 million term loan B due 2015.

According to the agency, the rating reflects high debt leverage and weak pro forma cash flow protection resulting from the pending leveraged acquisition of the company by an affiliate of Bain Capital Partners LLC, in view of the company's growth strategy of opening new centers and acquisition.

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