S&P affirms Advanstar Communications

Standard & Poor's said it affirmed its B- corporate credit rating on Advanstar Communications Inc., which is analyzed on a consolidated basis with its parent company, Advanstar Inc., after the closing of the company's second amended and restated credit agreement.

At the same time, the agency said it removed the ratings from CreditWatch, where they were placed with negative implications on July 7.

The agency added that it affirmed the bank loan rating of B+ and recovery rating of 1 on Advanstar's $60 million first-lien facility due 2009 as well as the B ratings and 1 recovery ratings on Advanstar's $291.3 million of second-lien 10.75% secured notes due 2010 and $9.8 million of second-lien secured floating-rate notes due 2008.

The outlook is negative.

S&P said that the rating reflects the consolidated company's high debt leverage, thin coverage ratios, limited liquidity, heavy reliance on cash flow from fashion industry businesses and uncertain earnings potential under current economic trends.

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