Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers V > Headlines for Vertrue Inc. > News item |
Moody's affirms Vertrue
Moody's Investors Service said it affirmed Vertrue Inc.'s B1 corporate family and probability-of-default ratings, Ba3 (LGD3, 42%) $148 million 9¼% senior unsecured notes due 2014 and SGL-1 speculative grade liquidity rating.
The outlook remains stable.
The agency said the B1 corporate family rating considers the company's moderate leverage position, stable free cash flow and its leading position in Internet marketing. For the 12 months ended Dec. 31, Vertrue had an adjusted debt-to-EBITDA ratio of 3x, and Moody's expects the ratio to drop below 3x over the near term due to the expected increase in the company's operating performance.
The corporate family rating also acknowledges Vertrue's marketing costs associated with the attainment of new members, highly acquisitive nature and continued challenges in the Lavalife subsidiary, Moody's said, adding that although the switch to monthly programs from annual programs generate higher recurring revenue per member and greater profitability over the membership life, higher total acquisition costs per member as well as the churn of the customer base partially offset some of the benefit.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.