S&P downgrades Hanley Wood

Standard & Poor's said it lowered the corporate credit rating on Hanley Wood Inc. to CCC- from CCC.

The agency also said it lowered the ratings on the company's senior secured debt by one notch in conjunction with the downgrade. Recovery ratings remain unchanged.

The outlook is negative.

The downgrade reflects a concern that covenant step-downs and continued weakness in the U.S. real estate market could cause Hanley Wood to violate covenants in early 2012 without an amendment, a refinancing or repayment of the revolving credit facility, S&P said, or an equity cure from sponsors.

The rating also considers the company's vulnerable business risk profile due to a concentration of profitability in one trade show, susceptibility to the cyclicality of ad demand in the residential housing and commercial construction markets and the negative impact of secular trends facing trade publishing, the agency said.

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