S&P ups Eye Care

Standard & Poor's said it raised the corporate credit rating on Eye Care Centers of America Inc. to B+ from B.

The agency upgraded the company's $165 million term loan due 2012 and $25 million revolving credit facility bank loan due 2010 to BB from BB-, and the rating on its subordinated notes to B- from CCC+.

The outlook is stable.

S&P said the upgrade reflects the company's successful entry in the Chicago market, continued operating improvements and an enhanced credit protection profile.

Ratings reflect the company's participation in the intensely competitive, highly fragmented optical retail market, small size relative to other industry players, substantial dependence upon managed vision care plans and high debt levels coupled with thin cash flow protection measures, the agency said.

The issuer's debt-to-EBITDA ratio fell to 4.1 times for the 12 months ended Dec. 29, from 5.1 times in 2006.

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