Moody's affirms Relizon

Moody's Investors Service said it affirmed the B1 ratings on the Relizon Co.'s senior secured bank credit facilities following the announcement that Relizon Holdings LLC has agreed to sell its marketing solutions subsidiary, The Relizon eCRM Co. (doing business as Epsilon Data Management), for about $300 million.

Ratings affirmed include the company's $9.9 million senior secured tranche A term loan due 2009 at B1, $210 million senior secured tranche B term loan due 2011 at B1, and $40 million senior secured revolver due 2009 at B1. The senior implied rating is B1 and issuer rating is B3.

The outlook is stable.

Moody's said the ratings confirmation reflects the company's strong competitive position, improved operating performance and focused management, which are balanced against financial risk, associated with high financial leverage and reduced free cash flow, which will result from the asset sale.

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