S&P rates Vicar loan BB-

Standard & Poor's said it assigned its BB- senior secured debt rating and 4 recovery rating to Vicar Operating Inc.'s (a subsidiary of VCA Antech Inc.) proposed, amended and restated $50 million revolving credit facility and $225 million term loan E.

At the same time, S&P raised its ratings on Vicar, including its corporate credit rating to BB- from B+, senior secured rating to BB- from B+, and subordinated debt to B from B-.

The outlook is stable

Vicar intends to use the proceeds from the $225 million term loan E to refinance $145 million of existing term debt, acquire National PetCare Centers Inc. for $77 million, and fund related expenses.

S&P said the speculative-grade ratings on Vicar reflect its narrow operating focus in a highly competitive industry with numerous local players. Such concerns are partially offset by its conservative growth strategy, revenue diversity across more than 300 animal hospitals, established laboratory platform, lack of exposure to third-party reimbursement, and by its commitment to repay debt.

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