S&P rates Affinity notes B-

Standard & Poor's said it assigned Affinity Group Inc.'s privately placed Rule 144A $125 million 10.125% senior notes due 2013 its B- issue-level rating, two notches lower than the B+ corporate credit rating on the company.

The agency said it also assigned this debt a recovery rating of 6, indicating its expectation of negligible recovery for noteholders in the event of a payment default.

Proceeds will be used for general corporate purposes and debt repurchases, including repurchases of Affinion Group Holdings' $350 million term loan due 2012 on the open market, and acquisitions, the agency added.

At the same time, the agency said it affirmed its existing ratings on the company, including the B+ corporate credit rating.

The outlook is stable.

"The B+ corporate credit rating on Affinion Group Inc., the operating subsidiary of Affinion Group Holdings Inc., reflects its concern about membership attrition in many of the company's services, some affinity partner concentration, competitive pressures in the membership marketing business, and still-high debt leverage," said S&P credit analyst Hal Diamond.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.