S&P drops Vertrue to CCC+

Standard & Poor's said it lowered its corporate credit rating on Vertrue LLC to CCC+ from B, reflecting poor operating performance and weakening liquidity following $35 million of debt prepayments and fees related to an amendment to the credit agreement and roughly $33 million of expenses to appeal an adverse decision regarding an Iowa litigation.

The outlook is negative.

At the same time, the agency said it lowered its issue-level ratings on the company's first-lien senior secured credit facilities to CCC+ from B. The recovery rating on this debt remains 3.

The agency noted that it also lowered its issue-level ratings on Vertrue's second-lien credit facility to CCC-, two notches lower than the corporate credit rating, from CCC+. The recovery rating remains 6.

"The downgrade and negative outlook reflect Vertrue's weak liquidity and its concern that revenue and EBITDA will continue to decline over the near-to-intermediate term," said S&P credit analyst Chris Valentine.

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