MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it cut
its corporate credit rating on R H Donnelley Corp. (RHD) to 'B+' from 'BB-'.
"The downgrade of the RHD corporate credit rating in part reflects concerns
over a slowing economy's negative impact on 2008 operating performance at a time
when the company has limited flexibility in its highly leveraged financial
profile at the prior rating level," S&P said.
Also, while RHD's satisfactory business profile will continue to benefit
from its incumbent market positions, high cash flow generation, and geographic
and customer diversity, S&P said it has moderately lowered its view of RHD's
business profile related to uncertainties surrounding the company's ability to
return to stable EBITDA and cash flow generation over the intermediate term.
S&P said it expects RHD to face sales declines in the low-single-digit
percentage area over the next two years, and may be challenged to stabilize
EBITDA and free cash flow generation over that time period.
The rating outlook is stable.
TFN.newsdesk@thomson.com
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