Fitch cuts Seat Pagine Gialle to B+

Fitch Ratings said it downgraded Seat Pagine Gialle Spa's long-term issuer default rating to B+ from BB-.

The outlook remains negative.

The downgrade reflects Fitch's perception of increased business risk for Seat as it faces the challenge of switching its business model online against the backdrop of a severe economic downturn, a potential increase in competition and the first major debt repayment of its senior secured debt package due in 2012, Fitch said.

The agency said it recognizes that Seat should remain a cash generative business, the challenge of switching the business model online in the context of an economic downturn, increased online competition and more debt amortization pressure puts the issuer's profile more in line with a B+ rating.

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