S&P: Affinion view negative

Standard & Poor's said it revised the outlook on Affinion Group Inc. to negative from developing and affirmed its B+ corporate credit rating.

Affirmed are the BB ratings for the senior secured $860 million term B bank loan due 2012 and the $100 million revolving credit facility bank loan due 2011.

S&P said the outlook revision follows the withdrawal of a registration statement for an initial public offering by the company's parent Affinion Group Holdings Inc.

The rating reflects some affinity partner concentration concerns, competitive pressures in the membership marketing business and high financial risk, the agency said.

The company's leading position in membership marketing, recurring revenue streams from renewals, and positive discretionary cash flow partially offset these factors, S&P said.

The company's lease-adjusted debt-to-EBITDA ratio was 6.4 times as of Sept. 30.

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