S&P cuts Advanstar loan to B-

Standard & Poor's said it affirmed the B- corporate credit rating on Advanstar Inc., which is rated on a consolidated basis with operating company Advanstar Communications Inc. Ratings were removed from CreditWatch, where it was placed with negative implications on Sept. 11.

The agency also downgraded the rating on Advanstar Communications Inc.'s $515 million first-lien term loan due 2014 to B- from B with recovery rating revised to 3.

The company's $260 million second-lien term facility due 2014 was affirmed at CCC with 6 recovery rating.

S&P said the affirmation follows Advanstar's access to a $10 million fund held at its parent, VSS-AHC LLC. In addition, the company removed covenant pressure by canceling its revolving credit facility.

"The rating reflects the trade show operator and publisher's high debt leverage, low total interest coverage, modest liquidity and fashion industry concentration, as well as our expectation of cyclical advertising demand," S&P analyst Tulip Lim said in a statement.

"The solid competitive positions of Advanstar's niche trade shows and publishing and related operations, as well as the relative stability of its portfolio, minimally temper these risks," the analyst said.

Debt-to-EBITDA ratio, net of management fees, was 10.2x for the 12 months ended Sept. 30.

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