S&P ups SuperMedia to CCC+

Standard & Poor's said it raised its corporate credit rating on SuperMedia Inc. to CCC+ from SD. The outlook is negative.

In addition, the agency said it affirmed the issue-level rating on the company's secured debt at D. The recovery rating on this debt remains at 5, indicating an expectation of modest recovery for lenders.

"The upgrade reflects our assessment of the company's credit profile after the completion of its latest subpar repurchase transactions," said S&P credit analyst Chris Valentine in a news release.

S&P said it believes there is a high probability of future subpar buybacks, which are tantamount to a default under the agency's criteria. The CCC+ corporate credit rating reflects S&P's view that SuperMedia's business will remain under pressure, given the unfavorable outlook for print directory advertising, the agency said.

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