S&P cuts Idearc

Standard & Poor's said it lowered its corporate credit and issue-level ratings on Idearc Inc.; the corporate credit rating was lowered to CCC from B-.

At the same time, the agency said it removed these ratings from Creditwatch, where they were placed with negative implications Oct. 31.

The outlook is negative.

"The downgrade reflects its expectation that Idearc's review of strategic alternatives related to the company's capital structure, which the company announced on Oct. 31, is likely to result in a recapitalization of some form over the near term," said S&P credit analyst Emile Courtney.

"We believe the company is currently in discussion with its lenders to restructure its bank debt."

The downgrade also reflects its expectation that EBITDA is likely to decline by about 25% in 2009, and this follows an EBITDA decline in 2008 that S&P said it expects will have been near 20%.

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