S&P cuts Caribe Media

Standard & Poor's said it lowered its corporate credit and issue-level ratings on Caribe Media Inc. to CCC+ from B and removed them from CreditWatch, where they were placed with negative implications Sept. 9, 2009.

The outlook is negative.

The recovery rating on the company's senior secured credit facilities remains at 3, indicating S&P's expectation of meaningful (50% to 70%) recovery for lenders in the event of a payment default.

S&P said the ratings on Caribe are based on the consolidated credit quality of the Local Insight Media family of companies. Caribe is indirectly owned by Local Insight Media Holdings LP (LIMH), which, in turn, is owned by certain funds of Welsh, Carson, Anderson & Stowe, Spectrum Equity Investors, and certain members of management.

"The ratings downgrade of Caribe reflects our belief that credit measures of the consolidated group of Local Insight Media companies will continue to weaken over the intermediate term, as we do not expect that EBITDA generation will be sufficient to reduce leverage," said S&P credit analyst Ariel Silverberg in a news release. "This stems from a combination of cyclical and what we believe are secular trends affecting the yellow page directory business."

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