S&P upgrades LBI, notes

Standard & Poor's said it raised its corporate credit rating on LBI Media Inc. to CCC from SD.

The outlook is negative.

At the same time, the agency raised its issue-level rating on LBI's 10% senior secured notes due 2019 to CCC from CCC-. The 3 recovery rating remains unchanged, indicating an expectation for meaningful recovery (50%-70%; high end of the range) in the event of a payment default.

S&P also raised its issue-level rating on the company's existing 11½%/13½% payment-in-kind (PIK) toggle second-priority subordinated notes to CC from D. The 6 recovery rating remains unchanged, indicating an expectation for negligible recovery (0%-10%) in the event of a payment default.

Additionally, the agency assigned its CC issue-level rating and 6 recovery rating to LBI's new 11½%/13½% PIK toggle second-priority subordinated series II notes. The 6 recovery rating indicates an expectation for negligible recovery (0%-10%) in the event of a payment default.

At management's request, S&P withdrew its ratings on LBI Media Holdings Inc., including the C issue-level and 6 recovery ratings on the company's 11% senior notes due 2017.

"The upgrade reflects LBI completing a distressed debt exchange on its second-priority subordinated notes," S&P credit analyst Minesh Patel said in a news release.

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