S&P cuts CBD Media, rates notes CCC+

Standard & Poor's said it lowered its corporate credit rating on CBD Media LLC to B from B+ and the rating on the company's subordinated debt to CCC+ from B-, removing the ratings from CreditWatch, where they were placed on Oct. 14.

S&P also assigned its CCC+ rating to $100 million in senior notes due 2012 issued by the company's parent, CBD Media Holdings LLC, reflecting the structural subordination of the notes, and assigned its B corporate credit rating to CBD Holdings.

The outlook is stable.

S&P said the downgrade reflects a more aggressive financial policy and its belief that CBD will maintain debt leverage that is substantially above previous expectations following the company's debt issuances to pay about $127 million in dividends to equity holders.

The ratings on CBD reflect the company's substantial debt levels, business concentration in a single market and relatively small EBITDA base, according to S&P.

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