S&P affirms Truvo

Standard & Poor's said it assigned a 6 recovery rating to the subordinated debt issued by Truvo Subsidiary Corp., subsidiary of Truvo Intermediate Corp., and affirmed the CCC+ ratings, two notches below the B corporate credit rating.

The agency said it has valued the company on a going-concern basis, given its satisfactory business risk profile, leading market position and specific industry characteristics, such as high barriers to entry, a well-diversified customer base and stable cash generation.

The corporate credit rating reflects the group's very aggressive leverage resulting from the 2004 acquisition of World Directories by private equity funds, the agency said.

The group's credit quality is supported by its cash-generative classified directory businesses in Belgium and Ireland, as well as on revenue and profit stabilization in the more challenging markets of Portugal and the Netherlands, S&P said.

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