S&P lifts Bright Horizons, rates loan B+

Standard & Poor's said it raised the corporate credit rating on Bright Horizons Capital Corp. to B+ from B.

The agency subsequently withdrew this rating as the company has repaid all of its debt and it does not expect further financings at this entity.

S&P also said it assigned a B+ corporate credit rating to Bright Horizons Family Solutions LLC.

All of the ratings were removed from CreditWatch, where they were placed with positive implications Jan. 14.

The agency also said it assigned a B+ rating to Bright Horizons Family's $890 million senior secured credit facilities, consisting of a $790 million term loan due 2020 and a $100 million revolving credit facility due 2018 with a recovery rating of 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The upgrade of Bright Horizons Capital is based on the recent completion of the refinancing and initial public offering transactions that improve the company's credit profile, S&P said.

The rating assigned to Bright Horizons Family's reflects an expectation that leverage will gradually decline over the intermediate term despite the company's acquisition orientation and high capital investment needs for new center openings, the agency said.

These factors underpin the company's aggressive financial risk profile, S&P added.

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