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S&P: DG Fastchannel loan BB-
Standard & Poor's said it assigned a BB- corporate credit rating to DG FastChannel Inc., along with a BB- issue rating to its $610 million secured credit facilities with a 3 recovery rating, indicating 50% to 70% expected recovery in a default.
The credit facilities consisted of a $120 million revolving credit facility due 2016 and a $490 million term loan B due 2018.
The outlook is stable.
The ratings incorporate an assumption of moderate revenue growth over the next several years because of increasing use of electronic delivery for high-definition short-form content and online advertising growth, S&P said.
The company's business profile is weak because of significant competition in online advertising from powerful incumbents and technology risk associated with cloud-based distribution or other new channels, the agency said.
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