S&P cuts SuperMedia

Standard & Poor's said it lowered the corporate credit rating on SuperMedia Inc. to SD, or selective default, from CC. The agency also said it lowered the issue-level rating on the company's senior secured credit facility to D from CC.

The downgrades reflect the company's recently approved amendment to allow subpar repurchases and a subsequent tender offer of its term debt of up to $185 million for 90 days from the effective date of the amendment at a price between 70% and 77% of par, S&P said.

These subpar buybacks are considered as tantamount to a default, the agency said.

S&P said it sees the company's debt leverage and poor operating outlook as indications of financial distress.

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