Moody's boosts Accuity, SourceMedia, rates loans B1

Moody's Investors Service said it assigned a B1 (LGD3, 33%) rating to Accuity Inc.'s proposed $20 million senior secured revolver due 2016 and $110 million senior secured term loan due 2017, as well as SourceMedia Inc.'s proposed $5 million senior secured revolver due 2016 and $35 million senior secured term loan due 2017.

Moody's said it also upgraded the corporate family rating of both companies to B1 from B2 and their probability of default ratings to B2 from B3.

The outlook was changed to stable from negative.

The upgrades reflect considerable improvement in the companies' liquidity profile and key credit metrics, revenue increases, steady cash flow generation and the diversity of revenue streams, Moody's said.

The ratings are constrained by the companies' relatively modest size, reliance on certain strategic partners and the secular decline in demand for print-based trade publications, the agency said.

The stable outlook reflects Moody's view that potential revenue declines at SourceMedia would be largely offset by continued organic growth at Accuity.

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