S&P rates ProfMedia bonds B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to ProfMedia Ltd. and a B+ rating to the RUB 3 billion bonds issued by ProfMedia-Finance LLC and fully guaranteed by ProfMedia Ltd.

The agency assigned the issue a recovery rating of 4.

The outlook is stable.

"The corporate credit rating on ProfMedia reflects its high financial leverage, volatile cash flow generation, high appetite for growth and projected negative free cash flow in the near term," S&P analyst Alexander Griaznov said in a statement.

"Exposure to the cyclical media industry in Russia and Russia's complex regulatory environment also constrain the rating."

These risks are moderated by the company's diversification in terms of revenues and EBITDA, the strong market position of its core content business and relatively low exposure to the cyclical advertising markets, the agency said.

The agency said it expects the average debt-to-EBITDA ratio for the three consecutive years to be about 3 times.

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