S&P affirms HGI, rates loans B+, CCC+

Standard & Poor's said it affirmed its B corporate credit rating on HGI Holding Inc.

At the same time, the agency said it assigned a preliminary B+ issue-level rating and a preliminary 2 recovery rating to the senior secured credit facility.

The facility consists of a $50 million revolver due 2015 and a $315 million term loan due 2016, the agency noted, adding that it also assigned a preliminary CCC+ issue-level rating and a preliminary six recovery rating to the $150 million senior unsecured loan due 2017.

"The rating on HGI Holding reflects its belief that the medical products distributor company will maintain an aggressive financial risk profile, characterized by high leverage and low coverage of interest, while operating in a fragmented industry that has low barriers to entry," said credit analyst Michael Berrian.

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