S&P lifts R.H. Donnelley, rates debt

Standard & Poor's said it raised its corporate credit rating on R.H. Donnelley Corp. to B from D in conjunction with the company's emergence from Chapter 11 bankruptcy proceedings and assigned ratings to the company's reorganized capital structure.

The $956 million term loan issued by Dex Media East LLC is rated B+ with a recovery rating of 2, the $904 million term loan issued by Dex Media West LLC is rated B+ with a recovery rating of 2, the $1.23 billion term loan issued by R.H. Donnelley Inc. is rated B with a recovery rating of 3, and the $300 million unsecured notes issued by R.H. Donnelley Corp. are rated CCC+ with a recovery rating of 6.

The outlook is stable.

The agency said the B corporate credit rating reflects the secular declines it believes to be prevailing in the print directories sector as well as S&P's expectation for a sustained level of EBITDA and revenue declines for the foreseeable future.

The stable outlook reflects S&P's expectation that the reorganized capital structure provides cushion at the current rating level, limiting ratings downside potential despite the agency's expectation for meaningful ad sales declines over the next two years.

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