Moody's cuts Yell Group to B2

Moody's Investors Service said it downgraded the corporate family rating of Yell Group plc to B2 from B1 and its probability of default rating to B3 from B2 and placed the ratings on review for further possible downgrade.

The downgrade follows news that the company plans to begin a capital restructuring negotiations to refinance the company's debt capital structure and the update on its current trading, Moody's said.

The downgrade and review reflects increasing concerns about the sharply deteriorating trend in the group's operating environment amid weakening macroeconomic conditions in its markets at a time when it is entering into a comprehensive negotiation of the maturity and terms of its credit facilities, the agency said.

The action also reflects the increasing default risk amidst the developing uncertainty over how the capital restructuring process will impact Yell's financial risk profile, Moody's added.

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