S&P: Dex One developing

Standard & Poor's said it revised its outlook on Dex One Corp. to developing from negative.

The existing ratings on the company, including the CCC corporate rating, were affirmed.

The rating action is related to the stock-for-stock merger between Dex One and SuperMedia.

"The outlook revision to developing reflects our expectation that if the merger is successful, Dex Media will benefit from cost synergies and tax attributes that could increase cash flow generation and its ability to repay debt," said S&P credit analyst Chris Valentine in a news release.

Additionally, the proposed maturity extension will delay the previous refinancing risk surrounding the $1.9 billion facility due 2014 at Dex One and $1.5 billion due 2015 at SuperMedia Inc.

"Still given the need for 100% lender approval for the deal and extension to go through, we see a risk that terms could change," said Valentine.

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