S&P lowers kgb to B-

Standard & Poor's said it lowered its ratings on directory assistance provider kgb, including the corporate credit rating, which was lowered to B- from B+. The outlook is developing.

The agency said it also lowered the rating on the first-lien credit facilities to B- from B+, with the recovery remaining 3. In addition, the agency said it lowered the rating on the second-lien term loan to CCC from B-, with the recovery rating remaining 6.

S&P said these rating actions reflect the fact that kgb has $206 million in term debt maturing in December 2012 and an undrawn revolving credit facility also maturing in December 2012. According to S&P, the company has yet to announce a refinancing plan.

"Given the one-year time horizon for the debt maturities, and the fact that cash from operations and available cash balances are not sufficient to repay this debt," said S&P credit analyst Catherine Cosentino in a news release, "we have revised the liquidity assessment of the company to 'weak' from 'less than adequate.'"

Under S&P's liquidity criteria, the corporate credit rating for a company with weak liquidity can be no higher than B-.

© 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.