Moody's rates ACS Media loans B1

Moody's Investors Service said it assigned B2 corporate family and probability-of-default ratings to ACS Media LLC and B1 ratings with loss-given-default assessments of LGD3 (39%) to its $10 million senior secured revolving credit facility due 2012 and $130 million senior secured term loan B due 2013.

The outlook is stable.

The agency said the ratings reflect the company's high leverage, the relatively small scale of its operations, the limited size and growth potential of its market, the formidable competition posed by rival directory publishers, its vulnerability to economic conditions in Alaska and the company's reliance upon one outsourcing company for its advertising, marketing, sales, production and distribution of its publications.

The ratings are supported by ACS Media's dominant market share, its reputation in Alaska as the "official yellow pages," its high margins and cash flow conversion rates and the diversity of its customer base, Moody's said.

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