S&P boosts SuperMedia

Standard & Poor's said it raised the corporate credit rating on SuperMedia Inc. to B- from SD and its senior secured credit facility to B- from D. The recovery rating on the senior secured debt remains unchanged at 3, indicating expectation of 50% to 70% recovery.

S&P said the action comes after completion of the company's tender offer, in which SuperMedia repurchased $185 million of term debt at prices below the face value.

The outlook is stable.

"The B- corporate credit rating reflects our view that SuperMedia will remain under pressure given the challenging outlook for print directory advertising," S&P analyst Chris Valentine said in a statement.

Deterioration in revenue and profitability could lead to EBITDA coverage of interest expense in the mid-1x area over the next two years and a weakening in the company's financial profile despite a significant reduction in its total debt as a result of the reorganization plan earlier this year, according to the agency.

Leverage marginally declined to 3.8x from just under 4.0x, the agency said.

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