S&P lifts SEAT

Standard & Poor's said it raised the long-term corporate credit rating on SEAT PagineGialle SpA to CCC from D (default).

The agency also said it raised the rating on SEAT's €750 million senior secured notes to CCC+ from D. The recovery rating on these notes is 2, indicating 70% to 90% expected recovery in a default.

S&P also withdrew the D rating and 2 recovery ratings on SEAT's senior secured credit facilities, including the term loan A, term loan B and revolving credit facility.

The agency also withdrew the D issue and 5 recovery ratings on the €1.3 billion subordinated callable bonds issued by SEAT's affiliate, Lighthouse International Co. SA.

The upgrade reflects an understanding that SEAT has completed its financial restructuring, refinancing its existing senior secured credit facilities with €686 million of new senior secured credit facilities, S&P said.

Following a merger with Lighthouse International, SEAT also undertook a debt-to-equity swap on about €1.24 billion of the €1.3 billion subordinated bonds and accrued interest of about €69 million, in exchange for 88% of the group's voting shares, the agency said.

The remainder of the subordinated bonds was converted into €65 million of new senior secured bonds, S&P added.

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