{"id":18606,"date":"2012-05-11T00:36:41","date_gmt":"2012-05-11T04:36:41","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=18606"},"modified":"2012-05-11T00:36:41","modified_gmt":"2012-05-11T04:36:41","slug":"s-preferreds-downgraded-to-d","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=18606","title":{"rendered":"S&amp;P Downgrades YLO Debt; Preferreds Downgraded to &quot;D&quot;"},"content":{"rendered":"<p>Standard &#038; Poor&#8217;s <a href=\"http:\/\/www.standardandpoors.com\/prot\/ratings\/articles\/en\/us\/?articleType=HTML&#038;assetID=1245333400686\">has announced<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>The prospect of near-term debt restructuring at Montreal-based Yellow Media Inc. has increased, in our opinion.\n<li>As a result, we are lowering our long-term corporate rating on Yellow Media to &#8216;CCC&#8217; from &#8216;B-&#8216;.\n<li>We are also lowering our issue-level rating on the company&#8217;s senior debt to &#8216;CCC&#8217; from &#8216;B-&#8216; and lowering our rating on the subordinated debt to &#8216;CC&#8217; from &#8216;CCC&#8217;; the recovery ratings on these debt obligations are unchanged.\n<li>Finally, we are keeping all the ratings on Yellow Media on CreditWatch, where they had been placed with negative implications Dec. 5, 2011.\n<li>The CreditWatch listing reflects our concern about the increased likelihood of near-term debt restructure, which is aimed at aligning the company&#8217;s capital structure to deteriorating operations as well as addressing the refinancing of sizable debt maturities in 2013 and beyond.<\/ul>\n<p>At the same time, Standard &#038; Poor&#8217;s lowered its issue-level rating on the company&#8217;s senior unsecured debt to &#8216;CCC&#8217; (the same as the corporate credit rating on Yellow Media) from &#8216;B-&#8216;. The recovery rating on the debt is unchanged at &#8216;4&#8217;, indicating our expectation of average (30%-50%) recovery in the event of a default. Standard &#038; Poor&#8217;s also lowered its issue-level rating on Yellow Media&#8217;s subordinated debt to &#8216;CC&#8217; (two notches below the corporate credit rating on the company) from &#8216;CCC&#8217;. The recovery rating on this debt is unchanged at &#8216;6&#8217;, indicating our expectation of negligible (0%-10%) recovery in a default situation.<br \/><b>&#8230;<\/b><br \/>In addition, we lowered the ratings on the company&#8217;s preferred shares outstanding to &#8216;D&#8217; (default) from &#8216;C&#8217;, owing to the nonpayment of dividends on these securities when due.<br \/><b>&#8230;<\/b><br \/>&#8220;The downgrade primarily reflects Yellow Media&#8217;s heightened risk of a near-term debt restructure given the significant refinancing risk for its debt maturities in 2013 and beyond,&#8221; said Standard &#038; Poor&#8217;s credit analyst Madhav Hari. &#8220;The downgrade also reflects our view that the company&#8217;s current capital structure is unsustainable against the backdrop of deteriorating revenue and cash flow trends,&#8221; Mr. Hari added.<\/p><\/blockquote>\n<p>YLO has four series of preferred shares outstanding: YLO.PR.A, YLO.PR.B, YLO.PR.C and YLO.PR.D.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Standard &#038; Poor&#8217;s has announced: The prospect of near-term debt restructuring at Montreal-based Yellow Media Inc. has increased, in our opinion. As a result, we are lowering our long-term corporate rating on Yellow Media to &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-18606","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18606"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18606\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}