S&P revises Yahoo! to positive

Standard & Poor's said it revised its outlook on Internet services provider Yahoo! Inc. to positive from stable due to lower supplier risk from the acquisitions of Overture Services Inc. and Inktomi Inc., growing revenue and EBITDA contribution from paying relationships, recovering demand for online advertising, and improving financial measures.

At the same time, S&P affirmed its BB+ credit rating on Yahoo.

The rating on Sunnyvale, Calif.-based Yahoo reflects the company's well-established Internet brand, high profit margins, good discretionary cash flow, and ample cash cushion, along with concerns regarding the company's revenue and earnings concentration from advertising, competition in the Internet search business, and the challenge of retaining its market position in an evolving Internet medium as Internet usage migrates to broadband.

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