S&P lifts Dex One

Standard & Poor's said it raised its corporate credit rating on Dex One Corp. and related entities to CCC from SD (selective default). The outlook is negative.

At the same time, S&P affirmed the issue-level rating on Dex Media East Inc.'s $672 million outstanding term loan, Dex Media West Inc.'s $594 million outstanding term loan, and R.H. Donnelley Inc.'s $866 million outstanding term loan due 2014 at D. The recovery rating on these loans remains at 5, indicating an expectation of modest (10% to 30%) recovery for lenders in the event of a payment default.

S&P also raised the rating on Dex One Corp.'s subordinated $300 million notes due 2017 to CC from C. The recovery rating remains at 6, indicating an expectation of negligible recovery (0% to 10%) for noteholders in the event of a payment default.

"The upgrade reflects our assessment of the company's credit profile after the completion of the subpar repurchase transaction in light of upcoming maturities, future subpar repurchases, and our expectation of a continued week operating outlook," explained S&P credit analyst Chris Valentine in a news release.

© 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.