S&P lifts kgb

Standard & Poor's said it raised kgb's, formerly known as Infonxx Inc., corporate credit rating to B+ from B

The outlook is positive.

The upgrade reflects the company's strong EBITDA and cash flow growth over the past year, driven by pricing and volume increases for its European retail directory assistance business, as well as a material reduction in advertising expense, according to S&P.

Ratings reflect a weak business position, the agency said, as well as the potential for margin compression and the limited scale of the company's overall operations, S&P said.

These concerns are mitigated by a history of profitability, an experienced management team, strong brand identity in key European markets, solid liquidity and low ongoing capital requirements, the agency noted.

The issuer's debt-to-EBITDA ratio fell to 3.4 times at the end of March 31, compared with 10.5 times at the end of 2006.

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