Moody's downgrades R.H. Donnelley

Moody's Investors Service said it downgraded the ratings of R.H. Donnelley Corp. and its subsidiaries following R.H. Donnelley's announcement that it filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy code.

The agency downgraded R.H. Donnelley's corporate family rating to Ca from Caa2, its probability-of-default rating to D from Ca/LD and its 6 7/8% senior notes due 2013, 6 7/8% series A-1 senior discount notes due 2013, 6 7/8% series A-2 senior discount notes due 2013, 8 7/8% series A-3 senior notes due 2016 and 8 7/8% series A-4 senior notes due 2017 to C (LGD5, 87%) from Ca (LGD4, 54%).

Moody's downgraded R.H. Donnelley Inc.'s senior secured revolving credit facilities and senior secured term loan D to B3 (LGD2, 15%) from B1 (LGD1, 4%) and its 11¾% senior unsecured notes due 2015 to Ca (LGD3, 44%) from B3 (LGD2, 14%).

Dex Media Inc.'s 8% senior unsecured global notes due 2013 and 9% senior discount global notes due 2013 were lowered to Ca (LGD4, 67%) from Caa3 (LGD3, 30%).

Dex Media East LLC's senior secured revolving credit facility due 2013, senior secured term loan A due 2013 and senior secured term loan B due 2014 were downgraded to B3 (LGD2, 15%) from B1 (LGD1, 4%).

The agency lowered Dex Media West LLC's senior secured revolving credit facility due 2013, senior secured term loan A due 2013 and senior secured term loan B due 2014 to B3 (LGD2, 15%) from B1 (LGD1, 4%), its 8½% senior unsecured notes due 2010 and 5 7/8% senior unsecured notes due 2011 to Ca (LGD3, 44%) from B3 (LGD2, 14%) and its 9 7/8% senior subordinated notes due 2013 to Ca (LGD4, 55%) from Caa2 (LGD2, 21%).

The outlook was changed to stable from negative.

Under the agreement in principle with key creditor constituencies, the company's total debt will be reduced from approximately $10 billion now to a pro forma level of $3.1 billion of secured debt and $300 million of unsecured debt, the agency said.

Moody's plans to withdraw all ratings of the company in the near term.

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