S&P gives Verizon Directories BB, loan BB+, notes B+

Standard & Poor's said it assigned its BB corporate credit rating to Verizon Directories Disposition Corp.

At the same time, S&P said it assigned its BB+ bank loan and 1 recovery ratings to the company's proposed $6.5 billion senior secured credit facility.

In addition, S&P said it assigned its B+ rating to the company's proposed $2.85 billion 10-year senior unsecured notes, adding that these notes are rated two notches below the corporate credit rating, reflecting the significant amount of priority debt that exists in the pro forma capital structure.

The outlook is stable.

The ratings on the company reflect its strong business profile as the second largest directory publisher in the United States with leading incumbent positions in many markets, long standing relationships with a large base of small- and medium-sized advertisers, predictable profitability and cash flow levels, low capital intensity inherent in the director publishing business, customer diversity and operational scale, S&P said.

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