S&P lowers ContextMedia

S&P said it lowered its corporate credit rating on ContextMedia Health LLC to CCC+ from B- and lowered the issue-level rating on the company's senior secured debt, which comprises a $325 million term loan B and a $50 million revolving credit facility, to CCC+ from B-.

The 3 recovery rating is unchanged, indicating expectations for meaningful recovery (50%-70%; rounded estimate: 60%) in the event of a default.

The outlook is developing.

“The downgrade reflects our expectation that ContextMedia may face additional challenges, including its ability to grow by attracting new and retaining existing customers, given the potential reputational damage following the negative news reports,” the agency said in a news release.

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