Moody's ups Eye Care Centers

Moody's Investors Service said it upgraded its corporate family and probability of default ratings for Eye Care Centers of America, Inc. to B1 from B2.

At the same time, Moody's said it upgraded its ratings on the company's senior secured credit facilities to Ba1 from Ba2 and the ratings on the company senior subordinated notes from Caa1 to B2.

The outlook is stable.

"The upgrade in Eye Care Centers's ratings reflect the company's consistently positive comparable store sale growth in its optical stores and benefits from direct importing of product which resulted in improved gross margins," said Moody's senior analyst Scott Tuhy.

"In addition, the company's credit metrics have improved following repayment of $56 million of funded debt since Highmark Inc. acquired ECCA in August 2006."

Affected ratings included the company's corporate family rating to B1 from B2, probability of default rating to B1 from B2, $132 million senior secured bank loan rating to Ba1 (LGD 2, 16%) from Ba2 (LGD 2, 22%) and $152 million senior subordinated note rating to B2 (LGD 5, 72%) from Caa1 (LGD 5, 77%).

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