S&P rates Vistar, loan B

Standard & Poor's said it assigned its B corporate credit rating to Vistar Corp.

The outlook is stable.

At the same time, S&P said it assigned its loan and recovery ratings to Vistar's proposed $90 million senior secured term loan due 2014, adding that the loan was assigned a B rating with a recovery rating of 3.

S&P added that net proceeds from the term loan, along with $180 million of borrowings under Vistar's proposed new asset-based revolving credit facility and $150 million of equity, will be used to finance the company's recapitalization and pay related fees and expenses.

The $350 million asset-based revolving credit facility due 2013 is not rated, the agency said.

According to S&P, the ratings on Vistar reflect its participation in two niche segments of the highly competitive U.S. foodservice distribution industry, thin operating margins and highly leveraged financial profile while these factors are only somewhat offset by favorable industry growth trends.

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