S&P ups Securus notes recovery

Standard & Poor's said it affirmed its ratings on Securus Technologies Inc., including its B- corporate credit rating and the B- issue rating on the company's second-lien secured notes, but revised the second-priority senior secured notes' recovery rating to 3 from 4.

S&P said that while Securus benefits from recurring, long-term customer contracts, the weak economy has hurt call volumes and associated revenue levels, and the company continues to have a highly leveraged capital structure.

"The ratings on Securus reflect the company's highly leveraged financial risk profile, at about 6.2x leverage for the 12 months ended Sept. 30, 2009, and a narrow focus within a competitive and evolving niche marketplace," said S&P credit analyst Catherine Cosentino.

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