S&P rates Vicar loan BB-

Standard & Poor's said it assigned its loan and recovery ratings to Vicar Operating Inc.'s, the operating entity of holding company VCA Antech Inc., proposed $160 million term loan C.

The loan is rated BB-, at the same level as the corporate credit rating on VCA Antech, with a recovery rating of 3, the agency added.

All other ratings, including the BB- corporate credit rating on VCA Antech, were affirmed, S&P said.

The outlook is positive.

According to S&P, the BB- corporate credit rating continues to reflect VCA Antech's narrow operating focus in a highly competitive industry, risks inherent in its acquisitive strategy and the questionable sustainability of its price increases while these risks are partially outweighed by the company's track record at selecting and integrating acquired facilities, its expanding footprint and revenue diversity, its established laboratory platform and its demonstrated willingness to use a portion of operating cash flow for delevering.

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