S&P lowers Cygnus Business

Standard & Poor's said it lowered its corporate credit ratings on Cygnus Business Media Inc. and its parent company CommerceConnect Media Holdings Inc., which are analyzed on a consolidated basis, to B- from B because of earnings softness and liquidity concerns stemming from Cygnus' tenuous compliance with its bank covenants.

At the same time, S&P lowered its first-lien and second-lien bank loan ratings on Cygnus to B- from B, and CCC from CCC+, respectively. The respective recovery ratings of 4 and 5 on the first- and second-lien loans are unchanged.

The outlook was revised to negative from stable.

S&P said the ratings on Cygnus reflect its poor liquidity, high leverage, large near-term debt maturities, small cash flow base, reliance on acquisitions to support its revenue and cash flow in recent years and the weak operating environment.

These risks are only partially offset by the company's cash flow diversity and the niche competitive positions of its complementary trade publications, expositions and related operations serving 15 industry sectors, the agency said.

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