S&P rates Wenner Media loans B

Standard & Poor's said it assigned its B corporate credit rating to Wenner Media LLC, along with a B rating and recovery rating of 3 to $215 million first-lien credit facilities, consisting of a $15 million revolving credit facility due 2017 and a $200 million term loan B due 2017.

The recovery rating of 3, indicates 50% to 70% expected recovery in a default.

S&P also said it assigned a B rating with a recovery rating of 3 to Wenner Media's existing $300 million term loan B due 2013 and undrawn $25 million revolving credit facility due 2013.

The proceeds will be used to refinance the company's existing term loan due October 2013.

S&P said it expects to withdraw the ratings on this debt once the company's proposed refinancing transaction is closed.

The outlook is negative.

The ratings reflect an expectation that leverage will remain high, given the structural pressures of declining newsstand and print advertising revenues facing the magazine publishing business, the agency said.

The risk that cost reductions may not fully offset the company's weak revenue trends and earnings concentration in one publication also is a key risk.

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