S&P downgrades ProfMedia

Standard & Poor's said it lowered the long-term corporate credit rating on ProfMedia to B from B+ and placed it on CreditWatch with negative implications.

The agency also said it revised downward the recovery rating on the senior unsecured notes issued by ProfMedia-Finance LLC to 5 from 4 and lowered the issue ratings on these notes to B- from B+.

The rating on the notes is one notch below the corporate credit rating.

The downgrades mainly reflect ProfMedia's weaker-than-expected operating performance in 2012, owing to unforeseen revenue and earnings volatility at its key content-production business, S&P said.

Earnings were also affects by lower overall profitability compared with the company's main peers, the agency said.

The likely deconsolidation of ProfMedia's Internet business has limited its business diversity, S&P added.

The downgrades consider the substantial increase in the group's leverage in 2012, the agency said, and an opinion that ProfMedia is unlikely to meaningfully deleverage this year.

© 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.