Moody's downgrades kgb

Moody's Investors Service said it downgraded the corporate family rating and probability of default rating of kgb to B1 from Ba3.

Moody's also lowered the first-lien senior secured credit facilities to Ba3 (LGD 3, 32%) from Ba2 (LGD 3, 33%) and the second-lien senior secured term loan to B3 (LGD 5, 84%) from B2 (LGD 5, 85%).

The outlook is negative, which reflects concerns about the credit impact of approaching debt maturities, the agency said.

The ratings reflect the company's increased financial risk from upcoming debt maturities, as well as general business risk associated with the uncertain growth prospects of new business lines necessary to offset ongoing secular decline in the core directory-assistance business, Moody's said.

The ratings also consider its strong EBITDA relative to its debt levels and increased investment spending on the daily deals business, which has reduced free cash flow conversion, the agency said.

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