Fitch rates Donnelley notes B-/RR6

Fitch Ratings said it assigned a B-/RR6 rating to R.H. Donnelley Corp.'s $500 million of senior unsecured notes. Fitch said it expects to rate Dex Media East's proposed $1.2 billion senior secured credit facility BB+/RR1.

Donnelley's issuer default rating was affirmed at B+ and its senior unsecured rating at B-/RR6. Dex Media East's issuer default rating was affirmed at B+.

The outlook is stable.

Some of the proceeds will be used to repay Dex debt. According to Fitch, the company said it intends to refinance its senior secured credit facility at Dex with a $750 million term loan A, a $350 million term loan B and a $100 million revolver. The company also expects to tender for Dex's senior unsecured and senior subordinated unsecured notes.

The debt payment slightly improves the recovery prospects for debt at the Donnelley holding company level, the agency said.

The company's leverage levels are likely to remain above 5.5 times for the next three to five years, Fitch said.

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