Moody's downgrades Cygnus

Moody's Investors Service said it downgraded Cygnus Business Media, Inc.'s probability-of-default rating to D from Caa1 and its corporate family rating to Ca from Caa1 following the company's disclosure that it has not repaid at maturity amounts due under its first-lien senior secured revolving credit facility and delayed draw term loan facility.

The agency lowered the first-lien loans and senior secured loan to Caa3 (LGD3, 42%) from B3 (LGD3, 42%) and second-lien senior secured facility due 2010 to C (LGD6, 91%) from Caa3 (LGD6, 91%).

The outlook is stable. This concludes the rating review which was initiated on August 8, 2008.

The downgrades follow Cygnus' disclosure to Moody's that it failed to repay its revolving credit facility and delayed draw term loan when they matured on Jan.13, according to the agency.

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