S&P lowers ContextMedia, debt

S&P said it lowered the corporate credit rating on ContextMedia Health LLC to CCC from CCC+.

The outlook is negative.

At the same time, the agency 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 CCC+.

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

“The downgrade reflects our view that ContextMedia could face an increased risk of default over the next 12 months due potential customer losses, legal costs and shareholder claims, if the defendants were to lose the lawsuit filed by certain minority equity investors,” S&P said in a news release.

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