User Submitted Posts display category list

I am having issues with some code modification within User Submitted Posts Plugin.

When the form is displayed using the code below:

<li class="usp_category">
				<label for="user-submitted-category" class="usp_label"><?php _e('Post Category'); ?></label>
				<div>
					<select class="usp_select" name="user-submitted-category" id="user-submitted-category">

						<?php foreach($settings['categories'] as $categoryId) { $category = get_category($categoryId); if(!$category) { continue; } ?>
						<option class="usp_option" value="<?php echo $categoryId; ?>"><?php $category = get_category($categoryId); echo htmlentities($category->name); ?></option>
						<?php } ?>
					</select>
				</div>
			</li>

It displays the category list in the order that the categories have been added to the WP install / DB.

I wish for them to be ordered in the normal way like below:

Cars
– BMW
– Ford
– ETC

Bands
– Muse
– Kings of Leon

How can I get this to appear in the drop down menu ready for submitting.