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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Post by NYI25on May 31, 2011 1:51pm
425 Views
Post# 18650774

BBB- stable

BBB- stable    The ratings agencies such as S&P are considered insiders.  S&P currently rates YLO BBB- which is investment grade with a stable outlook.

This is not to say that ratings agencies have all the answers, but should provide some comfort to investors getting jittery about bankruptcy talk.  YLO is not a bankruptcy candidate.  YLO has a manageable debt load and throws off a lot of cashflow.

The issue here is the dividend and its sustainability.  They'll probably maintain for 2011 and if they revise guidance downwards later in the year, they may cut dividends to match. 
Bullboard Posts