S&P lowers Dex One notes

Standard & Poor's said it lowered its issue-level rating on Dex One Corp.'s subordinated $300 million notes due 2017 to D from CC, reflecting the company's announcement that it repurchased $98 million face value of the notes at a price of 27% of par. The recovery rating remains at 6.

These subpar buybacks are tantamount to default under S&P's criteria, the agency said.

S&P said the CCC corporate credit rating on the company and the negative outlook remain unchanged. The agency said the CCC corporate credit rating reflects its view that Dex One's business will remain under pressure, given the unfavorable outlook for print directory advertising.

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