S&P upgrades Macrovision

Standard & Poor's said it raised its corporate credit rating on Macrovision Solutions Corp. to BB- from B+ and raised the company's $100 million 11% senior unsecured notes due 2013 by one notch to B with a recovery rating of 6.

The outlook is stable.

The agency said the upgrade reflects Macrovision's use of proceeds from sales of TV Guide Online, TV Guide Network and TV Games Network to reduce term debt, which meaningfully lowered debt leverage and increased the company's cushion of compliance with debt leverage covenants.

The BB- corporate credit rating reflects Macrovision's narrow business platform, technology risk, exposure to product lifecycles and relatively high debt leverage for its business, S&P said. Pro forma lease-adjusted total leverage was 5.7 times for the 12 months ended Dec. 31. S&P said that taking into consideration the recent debt reduction, the ratio is in the lower 4 times range.

High barriers to entry from the company's patent portfolio, the strong market position in its niche markets and a good EBITDA margin are positive factors, the agency said.

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