Moody's may upgrade Primedia

Moody's Investors Service said it placed all ratings of Primedia Inc. on review for possible upgrade.

The ratings placed on review include the $175 million in senior secured floating-rate notes due 2010 at B3; $300 million 8% senior notes due 2013 at B3; $475 million 8.875% senior notes due 2011 at B3; $225 million 7.625% senior notes due 2008 at B3; $167 million of series D 10% exchangeable preferred stock due 2008 at Ca; $95 million series F 9.2% exchangeable preferred stock due 2009 at Ca; and $212 million series H 8.625% exchangeable preferred stock due 2010 at Ca.

Also on review are the senior implied rating of B3 and the senior unsecured issuer rating of Caa2.

Moody's affirmed Primedia's SGL-3 speculative grade liquidity rating.

Moody's said this action follows the company's announcement that it has agreed to sell its About.com subsidiary to The New York Times Co. in a cash transaction valued at about $410 million.

The rating review will assess the likelihood that the sale will be successfully concluded, the probability that proceeds will be used to reduce Primedia's outstanding debt and preferred stock obligations, and the impact that this will have on Primedia's future interest expense and free cash flows.

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