S&P: Riverdeep outlook negative

Standard & Poor's said it revised its outlook on Riverdeep Group Ltd., the Ireland-based educational software publisher, to negative from stable. This action follows an increase in the amount of senior notes issued by the group to €225 million from the expected €205 million-€210 million range indicated originally.

At the same time, the B+ corporate credit and senior secured debt ratings on Riverdeep were affirmed.

"Although there are no immediate plans for Riverdeep to spend the additional debt issue proceeds, Standard & Poor's believes that an increase in the gross debt burden has resulted in a higher refinancing risk to bondholders over the medium term," said S&P credit analyst Anna Overton.

"The increase in financial risk stems from a higher gross debt volume than expected at the time of the original rating. The ratings could be lowered if the company's earnings remain flat or decline in the short-to-medium term, preventing it from making meaningful progress with financial deleveraging in the course of 2004 and 2005."

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