Moody's confirms infoGroup

Moody's Investors Service said it confirmed infoGroup Inc.'s Ba3 corporate family rating and the Ba2 rating on its senior secured credit facilities.

The issuer has a $175 million senior secured revolving credit facility due 2011 and $172.3 million senior secured term loan due 2012 rated Ba2 (LGD2, 21% from 23%).

The outlook is negative.

Moody's said the outlook reflects margin pressure due to higher operating costs and the recent acquisition of lower margin businesses, the prospects for slowing growth given the weak macro-environment, increasing debt levels over the last few quarters and the potential for limited cushion under one of its financial covenants.

infoGROUP's Ba3 corporate family rating reflects the company's recurring revenue stream, quality of its data, diverse customer base, sizable contract backlog, historically stable industry growth trends and significant barriers to entry, the agency said.

The rating is constrained by ongoing acquisition risk, relatively small scale and concerns over corporate governance, Moody's said.

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