S&P rates Vicar Operating loan BB-

Standard & Poor's said it assigned its BB- senior secured debt rating and 3 recovery rating to a proposed term loan and revolving credit facility issued by Vicar Operating Inc.

At the same time, S&P affirmed its BB- corporate credit rating on Vicar. The outlook is stable.

Vicar, the operating entity of holding company VCA Antech Inc., intends to use the proceeds from the proposed term loan to retire about $220 million of existing bank debt and tender $170 million of existing senior subordinated notes.

S&P said the ratings reflect its narrow operating focus in a highly competitive industry with numerous local players.

The ratings also reflect the questionable sustainability of the company's price increases and potential competition from drug and animal products retailers, according to S&P.

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