S&P puts Cygnus on negative watch

Standard & Poor's said it placed its ratings on Cygnus Business Media Inc. - including the CCC+ corporate credit rating, CCC+ first-lien bank loan rating and CCC- second-lien bank loan rating - on CreditWatch with negative implications.

The negative CreditWatch listing reflects the company's thin cushion of compliance with its bank covenants, its near-term debt maturity at the holding company level and nominal cash balances. These factors make the company vulnerable to a near-term default, and Cygnus' failure to proactively address these risks suggests an inappropriately high tolerance for risk, the agency said.

These factors are minimally offset by Cygnus' cash flow diversity and the niche competitive positions of its complementary trade publications, expositions and related operations serving 15 industry sectors, the agency said.

Cygnus is analyzed on a consolidated basis with parent company CommerceConnect Media Holdings Inc. The consolidated entity had roughly $200 million in debt and $45 million in mandatory redeemable series A preferred stock as of Sept. 30.

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