S&P: DoubleClick on developing watch

Standard & Poor's said it revised its outlook on DoubleClick Inc. to developing from negative, and affirmed its B corporate credit rating.

A developing outlook indicates that both positive and negative influences on the company could lead to a change in the rating. The agency said it revised the outlook based on DoubleClick's improving business performance and recent repayment of all outstanding debt.

However, S&P said it also is concerned that its private-equity owner, Hellman & Friedman LLC, could pursue debt-financed special dividends or other return-enhancing moves that releverage it.

The rating reflects continuing pricing pressure faced by its advertising management services, evolving technology risk and the highly competitive and fragmented online marketing services market, the agency said. These factors are partially offset by the company's leading share in several Internet ad-serving niches and its large suite of product offerings.

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