S&P cuts Caribe outlook to negative

Standard & Poor's said it revised its outlook on Caribe Media Inc. to negative from stable.

At the same time, the agency said it affirmed its B corporate credit rating.

The agency said that it also lowered its issue-level rating on Caribe's senior secured credit facilities to B, at the same level as the B corporate credit rating on the company, from B+ while it revised the recovery rating on these loans to 3 from 2.

"The outlook revision reflects its expectation that credit measures, based on the family of companies owned by Caribe's indirect parent Local Insight Media Holdings, LP, will weaken in the intermediate term," said S&P credit analyst Ariel Silverberg, "given its belief that the consumer-driven nature of the current recession will weaken print ad sales - which we believe are already in secular decline - to a greater extent than in the previous few quarters."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.