S&P cuts kgb view to negative, upgrades loan

Standard & Poor's said it revised its outlook on kgb to negative from developing and affirmed the B- corporate credit rating on the company.

At the same time, S&P raised the issue-level rating on the company's second-lien loan to B from CCC and revised the recovery rating to 2 from 6 following the repayment of its first-lien term loan. The 2 recovery rating indicates the expectation for substantial (70% to 90%) recovery following a payment default.

"The outlook revision reflects our view that there are limited prospects for an upgrade over the next year given the company's 'vulnerable' business risk profile, reflecting secular declines in the company's core directory assistance business for phone users in Europe and the U.S.," said S&P credit analyst Olen Honeyman in a news release.

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