S&P: DoubleClick on watch

Standard & Poor's said it placed its B corporate credit rating and B- subordinated debt rating on DoubleClick Inc. on CreditWatch negative following the company's announcement that it has retained Lazard Freres & Co. to explore strategic options, including a sale of part or all of its businesses, recapitalization, extraordinary dividend, share repurchase or a spin-off.

S&P said the CreditWatch listing is based on concerns that an extraordinary dividend or share repurchase could significantly erode DoubleClick's liquidity and business unit(s) sale could reduce revenue diversity.

While online advertising volume has increased over the past several quarters from the lows of 2001 and 2002, S&P said pricing on DoubleClick's ad serving service has been constrained by competition and stronger client leverage, postponing meaningful improvement in credit measures.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.