S&P cuts Primedia to negative watch

Standard & Poor's said it revised the CreditWatch implications on the B corporate credit rating for Primedia Inc. to negative from developing. The ratings remain on CreditWatch, where they were initially placed on Jan. 12, 2011 when the company announced that it was exploring strategic alternatives.

The revised CreditWatch listing reflects the view that a potential acquisition by private equity firm TGP Capital LP could weaken Primedia's credit metrics because of likely higher debt balances used to fund the potential acquisition, the agency said.

Primedia's financial risk profile would weaken in light of the company's declining revenues and challenges in improving profitability, the agency added.

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