S&P downgrades ALM Media

S&P said it lowered its corporate credit rating on ALM Media LLC to B- from B. The outlook is stable.

At the same time, S&P lowered its issue-level rating on the company's $237.5 million first-lien credit facility to B from B+. The credit facility consists of a $215 million first-lien term loan due 2020 and a $22.5 million first-lien revolving credit facility due 2020. The recovery rating remains 2, indicating an expectation for substantial recovery (70%-90%; rounded estimate: 70%) of principal in the event of a payment default.

S&P also lowered its issue-level rating on the company's $50 million second-lien term loan due 2021 to CCC from CCC+. The recovery rating remains 6, indicating an expectation for negligible recovery (0%-10%; rounded estimate: 0%) of principal in the event of a payment default.

“The downgrade reflects our expectation that ALM's negative operating trends will continue and the company will have a less than 15% EBITDA cushion of compliance, with its springing total net leverage covenant over the next six to 12 months,” said S&P credit analyst Scott Zari in a news release.

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