DBRS report on Dec 15th...I don't recall seeing this posted. Nothing has changed from before. Hopefully I can buy more B's and C's today.
DBRS Releases Report on Yellow Media Inc.
DBRS has today released a report that supports the recentconfirmation of Yellow Media Inc.’s (Yellow Media or the Company) IssuerRating at BB, its Medium-Term Notes at BB with an RR4 recovery rating,its Exchangeable Subordinated Debentures at B (high) with an RR6recovery rating and its Preferred Shares at Pfd-4 (low). The trend onits Issuer Rating, debt and preferred shares remains Negative.
DBRS notes that Yellow Media’s unsecured debt has average recoveryprospects while its subordinated debt has poor recovery prospects under abase case default/recovery scenario. As such, DBRS has confirmed YellowMedia’s Medium-Term Notes recovery rating at RR4 (30% to 50% expectedrecovery) with an instrument rating of BB and confirmed its ExchangeableSubordinated Debentures recovery rating at RR6 (0% to 10% expectedrecovery) with an instrument rating at B (high).
Yellow Media’s Issuer Rating at BB reflects two primary factors: (a)increased concern regarding the timing, execution and success of YellowMedia’s transition from print to digital; and (b) limited financialflexibility and liquidity while facing tighter credit facility covenantsand a steady stream of debt maturities beginning in 2013. The Negativetrend reflects the above factors along with the uncertainty in theCompany’s ability to not only execute on its transformation but todemonstrate its digital strategy is working while generating/attainingthe liquidity necessary to continue to support this digital transitionand its evolving capital structure over the medium term. DBRS notes thatthese factors are not mutually exclusive.
Note:
Today’s report and the December 8, 2011, press release are available at www.dbrs.com or by contacting us at info@dbrs.com.