S&P lifts Wenner Media to stable; recovery to 2

Standard & Poor's said it revised the outlook on Wenner Media LLC to stable from negative and affirmed its B corporate credit rating.

S&P also said it revised the recovery rating on Wenner Media's senior secured term loan and revolving credit facility to 2, indicating 70% to 90% expected default recovery, from 3. A 3 rating indicates 50% to 70% expected default.

The agency said it subsequently raised the rating on this debt to B+ from B.

The recovery rating revision reflects an expectation of slightly better recovery prospects, given the estimate of lower secured debt outstanding under the simulated default scenario, the agency said.

The outlook revision reflects an expectation that the company will continue to improve profitability and reduce debt leverage in 2013, offsetting ongoing weakness in business fundamentals, S&P said.

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

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