Moody's ups Mood Media outlook

Moody's Investors Service said it changed Mood Media Corp.'s outlook to positive from stable and also upgraded the company's speculative grade liquidity rating to SGL-2 from SGL-3.

At the same time, the agency said it affirmed the company's B2 corporate family and B3 probability of default ratings, as well as the Ba3 rating assigned to Mood Media's senior secured credit facility and the Caa1 rating assigned to the company's second lien credit facility.

According to Moody's, the company's recent acquisition of DMX Holdings, Inc. resulted in modest de-leveraging, albeit at the cost of modest margin dilution, and an estimated C$30 million in excess proceeds augmenting cash, which improves free cash flow and expands financial covenant compliance cushions.

The agency said these factors allowed Mood Media's SGL rating to be upgraded.

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