S&P: MediMedia up, off watch

Standard & Poor's said it raised its corporate credit rating on MediMedia USA Inc. to B- from CCC+. The agency said it also removed all ratings from CreditWatch, where they were placed with developing implications on Aug. 11.

The outlook is stable.

In conjunction with the upgrade, S&P said it raised the issue-level rating on the company's senior secured credit facility by one notch to B+ from B. The recovery rating on the facility remains unchanged at 1, indicating an expectation of very high recovery for lenders in the event of a payment default.

The agency said it also raised the issue-level rating on MediMedia's $150 million subordinated notes to CCC from CCC-. The recovery ratings on the notes remain unchanged at 6.

"The company recently executed an amendment to its credit agreement, resetting covenants with sufficient headroom and extending the maturity on a portion of its revolver and a portion of its term loan," said S&P credit analyst Jeanne Shoesmith in a news release. "Previous events of default were also waived under the amendment."

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