S&P: Catalina view stable

Standard & Poor's said it revised the outlook on Catalina Marketing Corp. to stable from negative and affirmed the B+ corporate credit rating.

The agency assigned a B- rating to Catalina's $330 million senior unsecured pay-in-kind toggle notes due 2015 and $160 million senior subordinated notes due 2017, which were issued in October to replace temporary debt in the company's capital structure. The recovery rating is 6.

"The outlook revision reflects Catalina's strong revenue and EBITDA growth year to date, and our expectation that the company's good operating performance will continue into 2009," S&P analyst Liz Fairbanks said in statement.

Adjusted debt-to-EBITDA ratio was about 5.9x at September.

The rating reflects high leverage, limited levels of expected debt repayment due to a growth strategy reliant upon high levels of capital investment, a competitive consumer promotion marketplace and a customer base of powerful consumer products companies, the agency said.

These factors are partly mitigated by Catalina's high margins and good levels of operating cash flow generation, relatively high barriers to entry in its markets, a good market position d and high customer renewal rates, the agency noted.

© 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.