Moody's cuts Solocal, PagesJaunes

Moody's Investors Service said it downgraded the corporate family rating of Solocal Group SA to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

The agency also downgraded the rating of €350 million senior secured notes issued by PagesJaunes Finance & Co. SCA due 2018 to Caa1 from B3.

The outlook is negative.

The rating action concludes the review that was initiated on Nov. 14. However Moody's noted that further negative pressure over the next few quarters could occur if the company breached financial covenants or failed to address the 2015 debt maturities in a timely manner.

Moody's said the action follows (a) increased uncertainty about the timely ability of the company to refinance or extend its 2015 debt maturities; (b) continued concerns about operating performance following the release of third quarter results; and (c) highly likely covenant breach in 2014 leading to tightening liquidity.

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