S&P gives Catalina loans B+

Standard & Poor's said it affirmed its B corporate credit rating on Catalina Marketing Corp.

The outlook is stable.

The CCC+ issue-level rating on Checkout Holding Corp.'s $260 million ($342 million current accreted value) senior discount notes due 2015 was also affirmed. The recovery rating on the debt remains 6, indicating an expectation for negligible (0% to 10%) recovery for lenders in the event of a payment default.

In addition, the agency assigned Catalina Marketing Corp.'s proposed $1,035,000,000 senior secured credit facilities (comprised of a $955 million term loan due 2020 and an $80 million revolver due 2018) an issue-level rating of B+, with a recovery rating of 2, indicating an expectation for substantial (70% to 90%) recovery for lenders in the event of a payment default.

"The 'B' corporate credit rating reflects our expectation that Catalina will have modest growth in revenue and EBITDA," S&P credit analyst Chris Thompson said in a news release.

"However, in our view, the company is likely to experience increased competition from digital marketing services players as it works to augment its traditional print point-of-sale coupon business."

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