S&P: LodgeNet view negative

Standard & Poor's said it revised the outlook on LodgeNet Interactive Corp. to negative from stable and affirmed its B+ corporate credit rating.

The outlook revision is based on concerns about the company's narrowing headroom under its tightening financial covenants, particularly given unfavorable economic trends, the agency said.

Ratings reflect exposure to the cyclical and seasonal lodging industry, the possibility that substantial capital spending will continue to limit discretionary cash flow as well as the limited size and long-term growth potential of this market niche, the agency said.

The issuer's lease-adjusted debt-to-EBITDA ratio was 4.4 times as of Dec. 31. The company was formerly LodgeNet Entertainment Corp.

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