Moody's affirms infoGroup

Moody's Investors Service said it affirmed infoGroup, Inc.'s B1 corporate family rating and B2 probability of default rating.

The agency also said it assigned a B1 (LGD 3, 33%) rating to the proposed senior secured credit agreement, consisting of a $50 million revolving credit facility due 2016 and $410 million term loan due 2018.

The outlook remains stable.

The proceeds will be used to refinance the existing credit facility and fund a dividend to the equity sponsor, Moody's said.

The ratings reflect the company's credit metrics, which remain consistent with the B1 ratings category, even as the proposed refinancing increases leverage, the agency said.

The ratings also consider the company's moderately high pro forma leverage of more than 4x, aggressive financial policy given the magnitude of the proposed dividend, increased debt levels, relatively soft revenue trends and exposure to highly cyclical marketing spending trends, Moody's said.

The ratings are supported by pro forma credit metrics appropriate for the ratings category, the company's ability to improve EBITDA through cost reductions and the expectation that a recovery in industry marketing spending should support growth, the agency said.

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