S&P lowers SuperMedia

Standard & Poor's said it lowered its corporate credit rating on SuperMedia Inc. to CCC+ from B- and placed the rating on CreditWatch with negative implications. S&P said the negative implications indicate that it could lower or affirm the rating.

The agency said it could also lower its issue-level rating on the company's senior secured credit facility to CCC from B-.

At the same time, S&P said it revised the recovery rating on the senior secured debt to 5 from 4. The 5 recovery rating indicates an expectation of modest recovery for lenders in the event of a payment default, the agency said.

"The rating action is based on the company's continued weak operating performance and its announcement of a proposed amendment, which would allow subpar repurchases of its term debt," said S&P credit analyst Chris Valentine in a news release.

"The CCC+ rating reflects our view that the business will continue to decline for the foreseeable future," said Valentine.

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