S&P downgrades Dex Media

Standard & Poor’s said it lowered the corporate credit rating on Dex Media Inc. to SD (selective default) from CCC+, along with the rating on its subordinated notes due 2017 to D from CCC-.

The 6 recovery rating on the subordinated notes is unchanged, indicating 0 to 10% expected default recovery.

The agency also said it lowered the rating on R.H. Donnelley Inc.’s senior secured term loan to CCC- from CCC and placed it on CreditWatch negative.

The 5 recovery rating on the term loan is unchanged, indicating 10% to 30% expected default recovery.

S&P also said it lowered the ratings on Dex Media East Inc., Dex Media West Inc. and SuperMedia Inc.’s credit facilities to CCC from CCC+ and placed the ratings on CreditWatch negative. The 4 recovery rating on the credit facilities is unchanged, indicating 30% to 50% expected default recovery.

The downgrades follow Dex Media’s failure to pay the cash portion of the interest payment on its subordinated notes due 2017, S&P said.

The interest payment was due Sept. 30, the agency said. The company currently has adequate liquidity to service its debt, the agency added.

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