S&P gives Rent-A-Center loan BB+

Standard & Poor's said it assigned its BB+ rating to Rent-A-Center Inc.'s proposed $725 million credit facility with a recovery rating of 4.

The agency added that the proposed loan comprises a $400 million revolving credit facility due in 2011, a $200 million term loan A due in 2011 and a $125 million term loan B due in 2012.

S&P said that the corporate credit rating on Rent-A-Center is BB+ with a negative outlook.

"The ratings on Rent-A-Center reflect the challenges of improving operations for a mature store base and the vulnerability of its customer to changes in disposable income," said S&P credit analyst Robert Lichtenstein.

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